Recently, Dogecoin (DOGE), the largest meme coin, faced a decline of 4% in its price, dropping below $0.16 within the last day. This comes as other meme coins like PEPE Coin and Dogfiwhat surged, showcasing substantial gains over the past weeks. Despite predictions of potential growth if it breaks through resistance levels around $0.166 to $0.171, Dogecoin has struggled to keep pace with its counterparts.

Analysts attribute Dogecoin's underperformance to a noticeable decrease in trading activity. Data from IntoTheBlock reveals an 18% drop in daily active addresses completing transactions involving DOGE over the past week. Similarly, new addresses created for trading DOGE decreased by 21% during the same period. This decline in trading metrics typically suggests reduced overall interest and trading volume in the meme coin.

Adding to the market dynamics, a significant trade was observed where a trader purchased 2 million Dogecoin call options with a strike price of $0.22, expiring in mid-June. For these options to be profitable, Dogecoin would need to surge approximately 31% from its current levels. This move follows a bullish trend in the meme coin sector, spurred by other market activities and developments.

Looking ahead, the performance of Dogecoin remains uncertain amidst varying market conditions and trading sentiments. The coin's ability to overcome resistance levels could potentially drive its value higher, but it currently faces challenges in maintaining momentum compared to its peers in the meme coin sector.