Dogecoin activity jumps, prices sink as meme coins test the trapdoor

💡 DMK Insight

Dogecoin’s drop to $0.09 despite rising on-chain activity signals a troubling divergence for traders. This disconnect between network usage and price suggests that sentiment is waning, even as more users engage with the blockchain. For day traders, this could mean increased volatility in the short term, especially if the price breaks below key support levels. Watch for $0.08 as a critical threshold; a sustained drop below could trigger further sell-offs. On the flip side, if on-chain activity continues to rise without a corresponding price recovery, it might indicate a potential accumulation phase for savvy investors looking to capitalize on future rebounds. Keep an eye on broader market sentiment as well, particularly how Bitcoin and Ethereum are performing, since their trends often influence altcoins like DOGE and Shiba Inu. If Bitcoin holds above its recent support, it could provide a lifeline for these meme coins, but if it falters, expect more pressure on DOGE.