Dogecoin Price Crashes Below $0.20 Despite SEC Raising Odds of DOGE ETF Approval

Dogecoin (DOGE) price continues to extend its downtrend despite meme coins getting the much-needed regulatory clarity in the US. After a steady drop this week, DOGE has fallen below a critical support level, and as the broader market reels from a brutal selloff, can DOGE price recover, or should traders brace for a dip to $0.10?

DOGE trades at $0.185 at press time, with a staggering 11% drop in 24 hours. 

Dogecoin Price Hits 4-Month Low as SEC Deems Meme Coins Non-Securities 

Dogecoin price trades at its lowest level in nearly four months after the price dropped by 26% in just seven days. The downtrend continues to extend despite the US Securities and Exchange Commission (SEC) declaring that meme coins are not securities. 

According to the SEC, meme coin trading does involve the offer and sale of securities as outlined in the federal securities laws. However, meme coin purchasers are not protected under securities laws. 

This statement has increased the odds of a Dogecoin ETF approval. According to Polymarket, the odds of a DOGE ETF being approved by the end of July 31 have soared to record highs. An approval could spark DOGE price rally to $1. 

Nonetheless, these factors are not enough for a bullish Dogecoin price prediction. Instead, DOGE holders continue to suffer losses. 

DOGE Holders Face Massive Losses as MVRV Dips 

The decline in Dogecoin price has placed many DOGE holders in losses, as shown by the 30-day Market value to Realized Value (MVRV) ratio. This ratio is deeply negative, suggesting that Dogecoin traders are facing unrealized losses of 20%. 

A significant dip in the MVRV ratio often hints at a buying opportunity that may precede a Dogecoin price rebound. However, if these losses continue, it may dampen the market sentiment for the meme coin in the near term, leading to further losses. 

Unless more traders buy the dip and show confidence in a recovery, and buyers overpower panic sellers, DOGE price still faces headwinds. 

Can Dogecoin Price Drop to $0.10? 

Dogecoin price is facing the risk of further downside that could push the meme coin to $0.10. On the daily chart, the RSI has dropped to record lows of 23, indicating a brutal sell-off that is causing the bearish trend. 

The last time that the DOGE RSI was this oversold was in March 2023 when Silicon Valley Bank and Signature Banks collapsed causing panic in the crypto market. 

Despite this oversold RSI, the crypto market is still in a state of fear, diminishing the likelihood of a Dogecoin price recovery. As selling pressure grows, Dogecoin price will likely drop to $0.12 in the near term. If it loses this support level, Dogecoin could plunge to $0.0085.  

Is a Recovery Ahead?

Dogecoin price remains under bearish stress, which weakens any chances of a recovery in the near term. The widespread market crash has intensified panic selling, which will accelerate the price decline for altcoins like DOGE.

Therefore, a recovery for DOGE price is not likely to happen in the near term unless the sentiment in the broader market shifts to positive and buying pressure replaces selling activity.