Dogecoin Renews Bearish Streak as Network Scaling Down: What's Going On?

The world of cryptocurrency is abuzz as Dogecoin faces a renewed bearish streak, dampening investor sentiment. Concurrently, the network undergoes a process of scaling down, raising concerns about its future.

Dogecoin Price Plummets Amidst Network Issues

Dogecoin is experiencing a significant downturn, fueled by a confluence of factors. The Dogecoin market has been characterized by insufficient momentum at this stage. The RSI has been hovering around neutral levels around 30, significantly below its previous highs, indicating a lack of buying pressure and increasing selling pressure.

Network Scaling Down: Active Addresses Plummet

Adding to the woes, Active Dogecoin addresses, a key indicator of network engagement, have plummeted by a staggering 95% since late 2025. This represents a dramatic fall from a peak, signaling decreased user activity and potential abandonment of the meme coin.

Elon Musk Dogecoin Lawsuit Lingers

The price decline comes as the shadow of a legal battle hangs over Dogecoin. Last week, Elon Musk was accused of insider trading and price manipulation by investors in a Dogecoin lawsuit. In a recent filing in Manhattan federal court, investors allege market manipulation, further eroding investor confidence.

Dogecoin Network Vulnerability and Node Crash

Adding to the chaos, a vulnerability in the Dogecoin network caused the crash of 69% of its nodes, according to Andreas Kohl, co-founder of Sequentia. Kohl claimed responsibility for exploiting the vulnerability, raising serious security concerns about the Dogecoin blockchain.

Is This the End for Dogecoin?

The renewed bearish streak, combined with network scaling down, legal challenges, and security vulnerabilities, paints a concerning picture for Dogecoin. While the meme coin has shown resilience in the past, its future remains uncertain. Investors should exercise caution and conduct thorough research before investing in Dogecoin.