Dogecoin Bulls Eye $0.60 Despite Network Activity Collapse

Dogecoin finds itself at a technical crossroads, with analysts divided on whether the popular meme coin will rally toward $0.60 or crash to $0.06.

The cryptocurrency currently trades at approximately $0.21, down nearly 20% over the past week amid a broader market selloff. The decline places DOGE at a critical decision point that could determine its trajectory for coming months.

Some technical analysts remain optimistic despite recent price action. Popular cryptocurrency commentator Ali Martinez pointed to the TD Sequential indicator, which has flashed a buy signal on Dogecoin's daily chart.

"The meme coin appears ready for a rebound," Martinez noted on social media platform X.

Industry analyst Rose Premium Signals offered an even more bullish outlook, suggesting Dogecoin is approaching "a key reversal zone." The analyst indicated that a breakout above $0.29124 could confirm a rally toward new peaks, with long-term targets between $0.50 and $0.60.

"If momentum continues, Dogecoin could reclaim its meme coin throne and push toward higher levels," Rose Premium Signals wrote.

Network fundamentals tell a different story. Martinez, despite his bullish technical outlook, recently highlighted concerning data about Dogecoin's ecosystem health. New address creation has plummeted from nearly 1.3 million in November 2024 to just 30,815 as of February 27 – a 97% decrease in three months.

Similarly, DOGE's total futures trading volume has collapsed from $58.2 billion in November to $992 million on February 26. Such metrics typically signal reduced user engagement and waning investor interest.

Martinez warned earlier this week that Dogecoin could crash to as low as $0.06 if its price breaks below the $0.19 support level. While recent selling pressure has been substantial, the price has thus far remained above this critical threshold.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.