Dogecoin (DOGE) has recently experienced a dramatic 12.5% decline over the past 24 hours, plummeting from 19 cents to 16 cents. This sudden drop can be attributed to the rising tensions between former President Donald Trump and technology entrepreneur Elon Musk, which have exerted pressure on crypto markets.
News Background
- The recent plunge in Dogecoin’s price occurs amid a climate of risk-off sentiment prevalent in the market.
- Elon Musk, a notable advocate for Dogecoin, recently announced the dissolution of the non-governmental Department of Government Efficiency (DOGE), declaring that its work was complete. This announcement has removed a speculated catalyst that historically influenced DOGE prices.
- The ongoing public feud between Musk and Trump regarding various economic and policy matters has attracted additional attention, further complicating the prospects for Dogecoin.
- While Musk’s endorsement has historically driven DOGE to remarkable heights, the token now faces the challenge of maintaining momentum in light of shifting investor sentiment and global trade tensions.
As institutional investors recalibrate their positions ahead of expected monetary policy shifts, DOGE’s future prospects will largely depend on its ability to reclaim key resistance levels and restore trader confidence amidst ongoing volatility.
Price Action
The recent sell-off was characterized by intense selling pressure during the 16:00-20:00 timeframe, with trading volume surging to over 1 billion units—nearly five times the daily average. This surge indicates that institutional distribution rather than retail panic primarily fueled the downturn.
This sell-off also coincides with escalating global trade disputes, which have burdened risk assets—including cryptocurrencies. While slight stabilization near the 17 cents area has been observed, the technical outlook remains challenging. The $0.190 level has solidified as a significant resistance zone, and price action displays only tentative signs of recovery amid a cautious market environment.
Technical Analysis Recap
- DOGE declined from $0.193 to $0.169, reflecting a 12.5% drop.
- The sharpest selling occurred between 16:00-20:00, with volume surpassing 1 billion units—nearly five times the average.
- Resistance has formed at the $0.190 mark, with cascading sell orders obstructing multiple recovery attempts.
- Support has emerged in the $0.169-$0.170 range, drawing substantial buying interest and establishing a high-volume support zone.
- Current price action has stabilized within the $0.171-$0.172 range, indicating some modest accumulation patterns.
- Specific buying pressure was observed at 01:23, 01:34, and 01:50, temporarily driving the price towards $0.172.
- A consolidation pattern is currently forming above the critical $0.169-$0.170 support zone, although the risk remains elevated.
Disclaimer: Portions of this article were generated with the assistance of AI tools and reviewed by CoinDesk’s editorial team for accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
