Dogecoin Leads Crypto Slump With 5.75% Drop Amid Tariff Uncertainty

Dogecoin experienced a significant decline, leading the losses among major cryptocurrencies with a 5.75% drop, bringing its trading price down to $0.1740. This downturn mirrored broader market trends, as Bitcoin, Ethereum, and XRP also saw notable decreases. The market's recent gains, fueled by uncertainties surrounding global tariffs, prompted investors to take profits, contributing to the overall slump.

Bitcoin, currently trading at $92,770.58, saw a 1.31% decrease. XRP followed with a 5.25% loss, trading at $2.16, while Ethereum dropped by 3.16%, settling at $1,755.43. The market's downward trend reflects a shift in trader sentiment, as they begin to secure profits after a period of steady upward movement earlier in the week.

The introduction of global tariff wars has had a ripple effect on financial markets, with cryptocurrencies feeling the impact. Bitcoin, often seen as a safe haven, managed to stay above the $92,000 level but still experienced a 1.31% decline, indicating that it is not entirely immune to the current profit-taking wave. Dogecoin, a memecoin, led the losses among major tokens with a 5.75% drop, highlighting its susceptibility to market volatility. Other tokens such as XRP and Solana’s SOL also saw declines of more than 2%, while Ethereum dropped by 3.16%. This downward pressure is partly due to corrections in bond yields and U.S. equities related to the tariff situation.

Technical analysis suggests that the recent price reductions may not be over. Dogecoin's 5.75% decline was triggered by breaking key support levels, while XRP's drop to $2.16 below key technical benchmarks poses the risk of further declines if the broader market remains bearish. Ethereum's 3.16% retreat to $1,755.43 aligns with the retreat of other altcoins, and Bitcoin's 1.31% drop indicates that long-term holders are still accumulating, but short-term traders are locking in gains. The price movements in these assets have been amplified by the market's illiquidity, a characteristic well-known in the cryptocurrency market. For volatile assets like Dogecoin, small trades across exchanges can lead to significant price changes.