Dogecoin is trading around 0.0906 USD, up 0.52% on the day, yet it remains trapped within a downtrend pattern that formed after reaching a January high above 0.14 USD. Over the past ten days, new address creation has fallen by about 87%, with a record decline from 73,000 on March 13 to 10,000 on March 22. Between the current price and a 23% decline, the only visible support is near 0.0881 USD, and a break below could target approximately 0.06864 USD, reflecting a potential 23.39% drop.
Beyond 0.0881 USD, the next Fibonacci region sits at about 0.08005 USD (0.786 retracement), followed by a 1.0 extension support around 0.06983 USD, and then the 0.06864 USD dotted line at the chart’s lower boundary. Earlier, DOGE slid from roughly 0.1157 USD down to around 0.0881 USD, underscoring the current pressure in the price action.
Santiment’s on-chain data indicates the DOGE network has realized losses since late January, suggesting that recently purchased holders are trimming positions rather than awaiting a rebound. The combination of sharply reduced new addresses and ongoing loss realization points to sellers outpacing buyers in absorbing supply, potentially accelerating the downside unless new buying pressure returns.
Historically, surges in new address activity have corresponded with price recoveries above 0.10 USD, but in each instance new entrants failed to sustain momentum. Until the on-chain activity reverses and price holds above the critical levels, the downside scenario remains the more likely path for Dogecoin.
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