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Dogecoin Price Crash – Will DOGE Drop Below $0.30 Next?

source-logo  cryptoticker.io 19 December 2024 18:37, UTC

The Dogecoin price has taken a significant hit, dropping by over 12% in the past 24 hours to a current price of $0.34. The broader crypto market is down by 4%, with US stock markets also experiencing losses. As a result, memecoins like Dogecoin are taking an even harder hit, given their naturally high volatility. Can Dogecoin recover, or is a larger crash on the horizon?

Dogecoin Price Today – Current Market Overview

At the time of writing, the Dogecoin price is $0.34, marking a drop of more than 12% in the past 24 hours. This sharp drop comes as the broader crypto market loses 4% in the same period.

Dogecoin is known for its high volatility, especially in bearish markets. As investors offload riskier assets, memecoins like Dogecoin tend to experience sharper declines compared to large-cap tokens like Bitcoin and Ethereum.

With US stocks also falling, investor sentiment has turned cautious. Memecoins like Dogecoin often move in sync with broader market sentiment, as they rely heavily on hype and speculative interest.

DOGEUSD_2024-12-19_19-34-48.png

DOGE/USD 4-hours chart - TradingView

Why Did Dogecoin Crash?

There are a few key reasons behind the DOGE price crash. Here’s a closer look at what’s driving Dogecoin’s price lower:

1️⃣ Overall Market Decline

  • The entire crypto market is down by 4%, with major coins like Bitcoin (BTC) and Ethereum (ETH) both pulling back.
  • When Bitcoin experiences a correction, altcoins and memecoins like DOGE tend to see even sharper declines.

2️⃣ US Stock Market Slump

  • The US stock market is also down, with investors growing cautious due to concerns about interest rates and macroeconomic instability.
  • As risk appetite decreases, investors move away from speculative assets like Dogecoin, leading to a larger sell-off.

3️⃣ Breached Support at $0.40

  • One of the biggest technical signals was the breach of the $0.40 support level, which triggered automated sell orders and panic selling from investors.
  • The next major support is at $0.30, and many traders are now watching to see if this level holds or if DOGE will drop even further.

Dogecoin’s crash is part of a broader trend affecting the crypto market as a whole. However, as a high-volatility memecoin, Dogecoin is more susceptible to larger swings compared to Bitcoin or Ethereum.

DOGEUSD_2024-12-19_19-35-46.png

DOGE/USD 4-hours chart - TradingView

Dogecoin Price Analysis – Can DOGE Stay Above $0.30?

The key question on every investor’s mind is, where will Dogecoin go next?

The $0.35 support level has been breached, and Dogecoin is now trading at $0.34. This breakdown has raised fears that lower lows are on the way. Here's what analysts are saying:

Immediate Support: $0.30

  • If Dogecoin continues its downtrend, the next key support is at $0.30. This level is critical, as it represents a historical area where previous bounces occurred.
  • If $0.30 fails, Dogecoin could face a much larger sell-off.

Resistance Levels to Watch: $0.35 and $0.40

  • On the upside, $0.35 now acts as resistance, meaning Dogecoin would need to push past this level before any further recovery.
  • The next target after that is $0.40, a level DOGE has struggled to break in recent weeks.

Volume and Market Sentiment

  • Current market volume for DOGE suggests that selling pressure is high, with more sellers than buyers in the market.
  • This negative sentiment could push DOGE toward $0.30 or even lower, especially if Bitcoin continues its downtrend.

Dogecoin's price chart shows a clear downward trend, with the token trading below its SMA 21 (simple moving average), a key technical indicator. This shift in momentum signals further bearishness, and traders are preparing for potential lower lows.

Dogecoin Price Prediction – Will DOGE Drop Below $0.30?

Given the current price action, many analysts are turning cautious on Dogecoin’s short-term outlook. Here’s a closer look at the key price predictions for DOGE:

Short-Term Prediction (Next 7-14 Days)

  • Bearish Target: $0.30
  • If Dogecoin continues to trade below $0.35, the most likely scenario is a test of the $0.30 support level.

Medium-Term Prediction (Next 1-2 Months)

  • Bearish Target: $0.28
  • If the broader crypto market faces further declines, Dogecoin could slip below $0.30, targeting $0.28 as the next area of support.
  • This scenario would likely occur if Bitcoin falls below $100K, as memecoins like Dogecoin follow larger market movements.

Bullish Reversal Scenario

  • Bullish Target: $0.40
  • For Dogecoin to reverse its downtrend, it would need to reclaim $0.35 as support and aim for a return to $0.40. This would require a broader market rally, especially from Bitcoin and Ethereum.

At the moment, the most likely scenario is for Dogecoin to retest $0.30. Whether this level holds or breaks will determine the next phase of Dogecoin's market cycle.

Should You Buy DOGE Now or Wait?

With the Dogecoin price down over 12% in the past 24 hours, many investors are wondering if this is a good buying opportunity. However, analysts warn that Dogecoin is currently in a bearish downtrend, and further declines are possible.

Here’s what you need to consider:

Wait for a Clear Reversal:

  • Instead of trying to "buy the dip," wait for Dogecoin to break back above $0.35. This would signal that selling pressure is easing and buyers are returning to the market.

Watch the Broader Market:

  • Keep an eye on the Bitcoin price. If Bitcoin continues to fall, it’s likely that Dogecoin and other memecoins will follow.
  • On the flip side, if Bitcoin stabilizes and climbs back above $104K, Dogecoin could regain momentum.

Set a Stop Loss:

  • If you decide to buy Dogecoin, consider setting a stop-loss at $0.30. This would protect you from larger losses if the market continues to crash.
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