Dogecoin has been losing ground in terms of network activity, as its unspent Transaction Output (UTXO)—one of the most important metrics to measure the level of user activity—has dropped 89% since late 2023. Likewise, active addresses have plummeted to 130,282 in February 2025 compared to 2.66 million in Nov 2024, which is a 95% drop.
It indicates lower user engagement and a lower number of transactions and raised uncertainty about long-term demand. Experts say that unless engagement bounces back, Dogecoin’s dominance in the market could dwindle even more.
Dogecoin Investors Adapt as Long-Term Sentiment Weakens
According to the latest data, there has been a stark change in which types of investors are holding Dogecoin, as long-term holders have been slowly cutting down their exposure. Long-term holders are down 2.67%, while mid-term holders are down 11.81%. This trend indicates that investors who previously held their positions for longer are now exiting the market, probably due to concerns around price instability and declining confidence in ongoing growth. That these are mid-term stake sell-offs means that a lot of these investors do not intend to sit through a protracted immobile market.
Caution from Investors and Market Sentiment
This change in ownership structure points toward a growing distrust concerning Dogecoin’s future trajectory… Investors could be responding to overall market circumstances, declining adoption, or increasing competition from newer digital assets. If this trend continues, it may result in market instability driven by short-term traders, increasing DOGE price volatility.
Rising Speculators as Longer-Term Investors Leave
While longer-term investors are easing their exposure, short-term trading has spiked sharply. A 107.45% surge in this metric indicates the increasing desire of traders to seek immediate profits while forgoing a long-term market strategy. This is probably part of the reason why prices recently started fluctuating wildly and hitting unexplained price levels; the more you buy and sell within a short period of time, the more unpredictable price movements will become.
Market observers say that while this pattern may seem harmless, it is actively destabilizing and impeding efforts to return Dogecoin to an upward trajectory. The Wall Street-ified presence of speculative traders may induce price swoons that have longer-term investors sitting on their hands waiting to get back into the market, if at all.
The Key Questions for Stability and Growth
LOREM analysts also warn that where Dogecoin does not recover downward stability, we risk further short-term speculation, which only increases volatility and a sustainable price recovery becomes even more difficult. It is essential for investor confidence in Dogecoin as well as its ability to be adopted on a larger scale, and we paired it to be plausible with its long-term viability. Without those factors, sustaining growth might be more challenging.
Market Sentiment
Still, some analysts have remained hopeful. CryptoELITES, for example, sees Dogecoin set to bounce back, with technical targets of $0.75, $1.5, and even $5. citeturn0search6
But the broader market postures come off as cautious. Robert Leshner, Founder of Compound, tweeted that the amount of transactions on the Dogecoin network has plummeted, and due to the focus on pumping prices up, there is a ”cheap impending delisting from exchanges” for Doge. Cryptocurrency prices are highly volatile; do your own research and never invest more than you can afford to lose.
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Frequently Asked Questions
1. Headlines: Why Dogecoin Can’t Hold the $0.20 Price Level
Whales continue to exert selling pressure on Dogecoin, which has seen diminished activity across the network and a decreased number of long-term holders, contributing to uncertainty and increased volatility in price action.
2. What effects does the rise in short-term holders have on Dogecoin’s price?
An influx of short-term traders would spike the price volatility, causing Dogecoin’s price — and thus long-term growth and investor confidence — to be more unstable.
3. Dogecoin Prices: Will Dogecoin Recover? Analyst Predictions
Some analysts suggest a possible rebound if demand picks up, suggesting targets of $0.75 and above, but sustained network activity is critical for its recovery.
4. What would cause Bitcoin’s price to plummet?
Bearish broader market, lower transaction volumes, regulatory ambiguities, and the fall of Bitcoin could result in Dogecoin breaking its support levels.
Glossary of Key Terms
Support Level: A price point at which there is sufficient buying interest to halt a downturn. In Dogecoin’s case, a crucial support level is $0.20.
Resistance Level: A price level at which profit taking occurs, capping the upward movement from continuing. In the event of recovery in the DOGE market, $0.25 could work as a level of resistance.
Whale: A large holder of cryptocurrency who is able to affect market prices by making large-scale buy or sell transactions that could disrupt the price stability of Dogecoin.
Short-Term Holders: Investors who buy and sell assets quickly, causing price volatility. Additional volatility comes from a 107% rise in short-term traders of dogecoin.
Liquidity: The ability to buy or sell an asset without substantially moving its price. Lower liquidity can make DOGE more susceptible to price volatility.
Market Sentiment: The general tone of the investors in regard to an asset. The bearish sentiment around DOGE is attributed to sell-offs, whale action, and falling adoption levels.
Speculative trading: buying and selling assets in accordance with price speculation rather than intrinsic value Speculative interest in dogecoin is also surging, adding uncertainty to its long-term outlook.
