The Dogecoin price crashed to as little as $0.31 this week and remains to be prone to losing the psychological $0.3 level. This price decline is as a result of several aspects, including developments on the macro side.
Why Did The Dogecoin Price Crash To $0.31
CoinMarketCap data shows that the Dogecoin price is down over 8% and has crashed to as little as $0.31 this week. This price decline has happened as a result of several aspects, including the FOMC decision coming up today, which has created some uncertainty available in the market. The US Federal Reserve is about to announce the Fed rate cut decision, whether or not they plan to chop rates.
CME FedWatch data shows that there’s a 99.5% probability that the US Fed will keep rates unchanged, which has sparked a bearish sentiment within the broader crypto market. The Fed keeping rates unchanged is bearish for the Dogecoin price, as investors are less likely to speculate in risk assets like DOGE.
The anticipation of rates remaining unchanged already contributed to the widespread selloff witnessed within the crypto market earlier within the week, which also impacted the Dogecoin price. One more reason why there was a wave of selloffs within the crypto market, resulting in the Dogecoin price crash, is the rise of the Chinese AI startup DeepSeek.
DeepSeek AI gained widespread popularity this week, which immediately sparked a wave of sell-off for US tech stocks, with trillions of dollars worn out from the US stock market. The crypto market also took a success because of this, resulting in this downtrend for the Dogecoin price. It’s price mentioning that the Bitcoin price had also dropped below $100,000 earlier within the week. As such, DOGE was certain to also witness such downward pressure given its strong positive correlation with the flagship crypto.
Positives For DOGE Amid Downtrend
There are still some positives for the Dogecoin price amid this downtrend. One is the incontrovertible fact that crypto whales are still bullish on the foremost meme coin and look to be accumulating during this downtrend. IntoTheBlock data shows that DOGE’s large transaction volume has surged by over 41%, with $23.35 billion traded during this era, indicating whale accumulation.
Crypto analyst Ali Martinez also revealed that whales have bought 460 million DOGE during this Dogecoin price dip. Meanwhile, crypto analyst Trader Tardigrade recently asserted that there are two bull runs on the horizon for Dogecoin. This got here because the analyst revealed that DOGE is following the Gaussian Channel pattern. He added that the meme coin first exited the channel when it was red, followed by a retest of the mid-channel line. With this retest out of the best way, DOGE could witness a large move to the upside next.
On the time of writing, the Dogecoin price is trading at around $0.33, down almost 1% within the last 24 hours, in accordance with data from CoinMarketCap.
Featured image from Unsplash, chart from Tradingview.com