On Monday, Memecoin Dogecoin (DOGE) took a substantial blow, plummeting 13% and losing 21% on the daily and weekly charts respectively. This downward spiral is attributed to the broader turbulence impacting the cryptocurrency industry. Bitcoin, Ethereum, and XRP, the three leading cryptocurrencies, have reported a fall of 3%, 15%, and 13% respectively in the daily chart. DOGE’s technical price analysis indicates a bearish trend, although a rebound may occur before any further downturn.
Presently, the memecoin is trading below the crucial price levels of $0.4039 and $0.3157, according to TradingView. Despite being below the 50 and 200 moving averages, DOGE is currently oversold with a Relative Strength Index of 28.
Depending on the market sentiment, DOGE might reach lower price levels if the current price level is not sustained. The subsequent support levels are $0.2165 and $0.1759. Dogecoin’s price decline is in sync with a wider crypto market slump caused by macroeconomic worries following the introduction of new tariff policies by Donald Trump. Due to the latest events, the market has lost over 6% in capitalization, with meme coins, known for their extreme volatility, being hit the hardest. Dogecoin is presently leading the losses.
Adding fuel to the bearish sentiment, large DOGE holders sold approximately 270 million tokens within a 24-hour period, as stated by renowned crypto market analyst Ali Martinez.
The price of Dogecoin has often been swayed by Elon Musk’s social media activities. His increased involvement in the Trump administration introduces another element of political uncertainty. Musk’s team has recently been granted access to the Treasury’s payment system, raising concerns about potential misuse of sensitive financial data.
Despite the Treasury Department’s reassurances that no payments have been blocked, the wider effect on financial markets is yet to be determined. While Dogecoin’s recent drop has impacted investor confidence, future movements will likely hinge on the broader market conditions and the return of buying pressure. If whales continue to offload, and technical indicators stay bearish, further downside could be in store for the meme coin. However, DOGE’s history of bouncing back after severe drops suggests there may be potential for recovery.
