Dogecoin News Today: Dogecoin Drops 6.83% as Strong Dollar and Macro Uncertainty Weigh on Crypto Market

Dogecoin (DOGE) faced significant downward pressure on August 1, 2025, as the broader cryptocurrency market reacted to a stronger U.S. dollar and macroeconomic uncertainty. The coin dropped nearly 6.83% from the previous session, reaching around $0.2078 and continuing a four-day losing streak that saw its price fall from $0.222 to $0.205. Over $751 million in leveraged positions were liquidated, with long traders bearing the brunt of the sell-off. This sharp correction pushed DOGE below its 200-day simple moving average (SMA) at $0.212, signaling increased caution among traders and highlighting the fragility of bullish positions in the current environment [1].

The broader crypto market mirrored DOGE’s decline, with global digital assets falling approximately 5.87%. A major contributing factor was the U.S. government’s recent tariff announcements, which spurred risk-off behavior across financial markets. The selloff was compounded by thin summer liquidity conditions, which amplified the impact of leveraged trading. Over $629 million in liquidations were recorded, with altcoins such as Solana and XRP also experiencing significant declines [6].

The U.S. dollar index (DXY) rose more than 3% over four weeks, putting downward pressure on cryptocurrencies. A stronger dollar increases the cost of holding digital assets for investors using other currencies, further contributing to the sell-off. This trend aligns with the Federal Reserve’s decision to maintain interest rates at 4.25%, which dampened market optimism and reinforced the bearish sentiment. Analysts noted that persistent inflation—evidenced by the core PCE price index rising 2.8% year-over-year in June—also played a role in keeping investors cautious [9].

DOGE’s near-term outlook remains bearish. Traders are closely watching the $0.20 psychological support level and the 50-day SMA at $0.194. A breakdown below these thresholds could lead to further losses, potentially pushing the price even lower. On the other hand, a rebound in bullish momentum may see DOGE attempt to reclaim the 200-day SMA at $0.212, which currently acts as a key resistance level [2].

While the short-term outlook for DOGE is challenging, the broader crypto market has shown resilience in the long term. Ethereum, for instance, posted a 56% gain in July, its strongest monthly performance in three years. Additionally, the SEC’s "Project Crypto" initiative signals growing institutional acceptance of digital assets. However, these developments do not currently offset the near-term headwinds facing DOGE and other altcoins [7].

The recent market correction underscores the volatility inherent in the cryptocurrency space. While fundamental demand and regulatory progress provide long-term bullish potential, investors must remain cautious in the face of macroeconomic risks and policy shifts. Until clearer signals emerge, DOGE and other altcoins are likely to remain under pressure.

Sources:

[1] https://coincentral.com/why-is-crypto-down-today-heres-what-you-need-to-know-3/

[2] https://stockinvest.us/stock/DOGEUSD

[3] https://www.mitrade.com/insights/news/live-news/article-3-1004558-20250801

[4] https://www.ainvest.com/news/bitcoin-news-today-crypto-market-plunges-5-87-trump-tariffs-fed-policy-spur-sell-2508/

[5] https://www.investing.com/analysis/us-dollar-faces-key-test-ahead-of-nonfarm-payroll-report-200664696

[6] https://www.ainvest.com/news/solana-news-today-altcoins-plunge-5-7-percent-surging-liquidations-thin-liquidity-2508/

[7] https://www.analyticsinsight.net/price-analysis/crypto-prices-today-bitcoin-price-falls-251-to-115572-as-ethereum-posts-56-monthly-gain

[8] https://www.bitget.com/price/dogecoin/price-prediction