Dogecoin (DOGE) Plunges 40% as Market Sell-Off Intensifies, More Losses Loom

Key Takeaways

• DOGE’s price tumbles to $0.20 following Trump’s reiterated commitment to the U.S. trade wars.
• While Dogecoin’s trading volume exceeds $2 billion, it represents intensified selling pressure.
• Indicators like the price DAA and the MACD show that DOGE’s price might fail to rebound.

The crypto market remains entrenched in a deep bearish phase as the steep price plunge of recent weeks continues today.

Dogecoin (DOGE), which many analysts expected to start 2025 strong, also remains part of this phase.

DOGE’s price has fallen 10% in the past 24 hours and 40% over the last month.

This price decrease seems related to Donald Trump’s repeated stance that the U.S. will continue its tariffs against nations like Mexico and Canada.

Previously, this macroeconomic event was one of the reasons Dogecoin and other cryptos crashed earlier in the month.

With the U.S. President unwilling to let sleeping dogs lie, DOGE might not see any notable respite soon.

Key Indicators Predict Dogecoin’s Freefall

Today, DOGE’s price aligns with CCN’s previous forecast that the memecoin will likely see another double-digit drop. As of this writing, the cryptocurrency’s value hovers around $0.21, representing its lowest since November 2024.

Amid this decline, Dogecoin’s volume, which was less than $800 million yesterday, has risen to $2.46 billion. When trading volume rises, it means there is sufficient liquidity in the market to facilitate buying and selling.

However, this is only bullish when the price increases. In Dogecoin’s situation, the rising volume plus crashing price signifies high selling pressure.

Thus, if sustained, this might strengthen the downtrend, and DOGE’s price could continue to fall.

Besides that, the price Daily Active Addresses (DAA) divergence also validates this bearish move. The DAA measures the level of user interaction with a cryptocurrency.

When combined with the price, it checks if the level of user engagement can support the trend. A positive price DAA divergence reading typically indicates a buy signal, as rising user participation can trigger high demand.

However, the metric dropped to an extremely negative reading in this case. If sustained, this presents a sell signal, indicating that DOGE’s price is unlikely to rebound from its recent lows.

DOGE Price Prediction: $0.20 Support Under Threat

From a technical perspective, the 4-hour chart shows that DOGE traded within a symmetrical triangle between Jan. 31 and Feb. 24. This symmetrical triangle signals market indecision.

When the price breaks out above the lower highs of the triangle, it can drive the crypto’s value higher.  But in this case, DOGE’s price has fallen below the lower lows, indicating that the accelerated downtrend could be next.

Furthermore, the Moving Average Convergence Divergence (MACD) is in the negative region, signifying bearish momentum. The 12 EMA (blue) has also crossed below the 26 EMA (orange), reinforcing the bearish bias around DOGE.

Considering this position, Dogecoin’s price might experience another correction, especially if it breaks below $0.20. If that happens, the next point for the memecoin to reach could be near $0.14.

On the contrary, if the cryptocurrency sees an increase in buying pressure around the current market value, this trend could change.

In that scenario, DOGE could break the resistance at $0.27 and rally toward the 0.618 golden ratio at $0.35.