Deep correction, market sluggish
In the past week, Dogecoin (DOGE) has experienced a significant pullback, currently priced at $0.1667, with a daily decline of 3.33% and a weekly decline of 6.78%. The continuous drop has sparked widespread attention in the market regarding its trend.
Key support tested
DOGE is testing the key support level at $0.167. If this level holds, a rebound to $0.175, or even a push to $0.183, is possible in the short term. However, the closing price has consistently struggled to maintain above $0.1667, leaving this rebound expectation uncertain.
Sentiment collapses, data weakens
On-chain data shows that the weighted sentiment for DOGE has remained negative over the past few days, with the market generally bearish. At the same time, network activity has sharply declined, and the price-to-active addresses (DAA) indicator remains negative, indicating that even as prices drop, user participation is decreasing faster, lacking on-chain support.
Bears dominate, financing rates decline
In the derivatives market, DyDx's financing rate has been negative for several consecutive days, indicating that bears continue to hold the upper hand. The RVGI indicator has also dropped to -0.12, reflecting a clear downward trend, and Dogecoin's short-term trend still faces pressure.
Downside risks remain
If the current trend continues, DOGE may continue to decline, with the next support level possibly at $0.161. Unless macroeconomic positives stimulate a return of buying, such as interest rate cuts or economic improvements, the short-term rebound potential is limited.
