Dogecoin Price Eyes a 20% Rebound Ahead of SCOTUS Ruling on Trump’s Tariffs

Dogecoin price suffered a flash crash today, January 9, erasing all the gains it made earlier this year. DOGE was trading at $0.1275, down by 18% from the year-to-date high. Still, the coin could be on the verge of a big rebound ahead of the SCOTUS ruling on Donald Trump’s tariffs this week.

Dogecoin Price May Rebound if Scotus Ends Donald Trump’s Tariffs 

The value of DOGE dropped sharply on Monday as the crypto market crashed. Bitcoin slipped below the crucial support level at $95,000, while the market capitalization of all tokens fell by over 2.5%.

This crash was mostly because of the ongoing concerns about a new trade war between the United States and some NATO member countries like Germany, the United Kingdom, Sweden, and Norway.

Dogecoin price dropped as bullish liquidations jumped to the highest level since November. A liquidation happens when exchanges are forced to close leveraged positions when losses mount, and the collateral ends. 

However, on the positive side, there is a major catalyst that may lead to a strong Dogecoin rebound this week: the Supreme Court of the United States (SCOTUS). The court will deliver its ruling on a major case on Donald Trump’s tariffs on Tuesday.

Data compiled by Polymarket shows that most users expect that the bank will rule against Trump and his tariffs. It may also decide to order refunds to thousands of companies that have been affected.

Such a move would likely invalidate the new tariffs by Trump on these NATO members, which would boost assets that dropped today.

However, the relief would be brief as the president has other ways to impose his tariff against other countries. He may implement tariffs using Section 301 on unfair trade practices, 232 on national security, or ask Congress for the authority to add new tariffs. 

Dogecoin has another major catalyst this week. For example, the Senate Banking Committee may make progress on the stalled CLARITY Act. Such a move would also boost cryptocurrencies, which dropped last week after the bill stalled.

DOGE Price Prediction: Technical Analysis 

The daily timeframe chart shows that the DOGE price crashed and bottomed at $0.1160 in December and started a rebound, reaching a high of $0.155 on January 5.

The coin then retreated and pared back some of the gains it made earlier this year. It has moved below all moving averages and the Supertrend indicator. 

However, on the positive side, the coin is slowly forming a hammer candlestick pattern, a common bullish reversal sign. This pattern is made up of a small body and a long lower shadow, and it normally happens when an asset is in a downward trend.

Therefore, the most likely long-term DOGE price forecast is bullish, with the initial target being the year-to-date high of $0.1560, which is slightly above the Major S&R Pivot Point of the Murrey Math Lines tool. 

This target is about 22% above the current level.  A move above that price will point to more gains to $0.1953, the ultimate resistance, which is about 55% above the current level.

On the other hand, a drop below the December low of $0.1160 will invalidate the bullish outlook. Such a move will mean that there are more sellers left in the market, with the next key level to watch being at $0.100.