Why Dogecoin Price is Going Down Today?

The price of Dogecoin has declined by over 6% in the last 24 hours following a broader market downturn. Bitcoin also dropped below $84,000, adding to the pressure on cryptocurrencies. Several factors, including market trends and economic developments, have contributed to Dogecoin’s price movement.

Dogecoin Price Plummets, Is A Recovery Near?

Dogecoin’s price has fallen to around $0.20, with analysts suggesting that it is following a familiar cycle seen in previous years. Historically, Dogecoin has gone through corrections before rebounding.

Crypto analyst Bithereum noted that Dogecoin price was moving within a falling wedge pattern, which indicated that a drop to $0.20197 was likely. This level has been tested, aligning with historical trends where Dogecoin price experiences pullbacks before rallying. Despite the drop, analysts believe Dogecoin could reverse to the upside, potentially reaching $0.45  soon.

Another factor contributing to the DOGE price decline is the decrease in network activity. According to market data, new address creation on the Dogecoin network has significantly dropped from 1.29 million in November to just 30,815. A decline in new addresses suggests lower investor participation, which can weaken buying pressure and lead to price declines.

Donald Trump 25% European Union Impact on DOGE Price

Dogecoin price recent drop also comes amid broader economic concerns. A major factor influencing the market is U.S. President Donald Trump’s announcement of a 25% tariff on the European Union.

“We have made a decision, and we’ll be announcing it very soon. It’ll be 25 per cent,” Trump said during a cabinet meeting, as reported by the Financial Times. His comments raised concerns about potential trade tensions between the U.S. and the EU, which affected global markets, including cryptocurrencies.

Following the announcement, Bitcoin price fell below $84,000, dragging the broader crypto market down. Dogecoin saw a decline of over 6% as traders reacted to economic uncertainty. Some analysts believe that fear surrounding economic policies led to increased selling pressure across digital assets. Concurrently, continued DOGE selling pressure, particularly from large investors, could lead Dogecoin to retest lower levels before stabilizing.

Dogecoin Price May Be Ready for a Rebound, Top Analyst

Despite the price drop, technical indicators suggest that Dogecoin price may be approaching a reversal. According to crypto analyst Ali (@ali_charts), the TD Sequential indicator has flashed a buy signal on the daily chart. This indicator is often used to identify potential trend reversals, suggesting that Dogecoin could soon experience upward momentum.

Trader Tardigrade, another analyst, pointed out that DOGE price has been following a similar pattern to its 2017-2018 bull run. If the trend continues, Dogecoin could see a strong rally, potentially moving toward the $1.70 level.

Additionally, Master Kenobi noted that Dogecoin is holding above a critical trend line that has historically acted as support. He also mentioned that Dogecoin’s Relative Strength Index (RSI) is at its lowest level since March 2023, which could indicate that the selling pressure is easing and a recovery may follow.

Consequently, crypto analysts have identified key price levels that could determine Dogecoin price next move. If Dogecoin price maintains its support around $0.20, a potential rebound could push it toward targets of $0.30998, $0.37154, and $0.45918 in the coming weeks.

Further, the rising bets of a DOGE ETF approval also keep investors enthusiastic over future movements. CoinGape reported that Grayscale Investments, CoinShares, and WisdomTree have submitted ETF filings in recent days. Traders and investors continue to eye the token for further price action shifts.