Dogecoin (DOGE-USD) is struggling, falling over 6% in the past 24 hours to $0.226. It’s not alone—the entire memecoin sector is bleeding, with Shiba Inu, Pepe, and Bonk all posting losses of 5-7%. The downturn has wiped out $4.11 billion from the memecoin market in just a day, a sign that speculative hype is cooling fast.
Scams and Hacks Are Driving DOGE Investors Away
A major reason behind this sell-off is an influx of memecoin rug pulls. On-chain investigator ZachXBT has linked some of these scams to North Korea’s Lazarus Group. This naturally has raised concerns regarding fraud in the space. Many investors burned by these schemes may be dumping meme tokens entirely, further dragging down Dogecoin’s price.
Dogecoin’s Network Activity Is Declining
Adding to the concerns, Dogecoin’s on-chain activity is dropping, signaling lower demand for transactions and payments. Whale transactions over $1 million have fallen to their lowest level in four months, while trading volume has also significantly declined.
Dogecoin Risks a 35% Drop if Key Support Fails
Technical indicators don’t look great. Dogecoin is currently testing support at $0.2197, but if it breaks below that, analysts warn it could drop another 35% to $0.1459 by March. For Dogecoin to regain momentum, it needs to reclaim $0.2670 as a support level.
With weak sentiment, declining activity, and mounting fraud concerns, Dogecoin faces a tough road ahead unless a major catalyst appears. At the time of writing, DOGE is sitting at $0.2276.
