Dogecoin Plummets 6% Amidst Market Downturn and Trade Tensions

The price of Dogecoin has declined by over 6% in the last 24 hours, following a broader market downturn. Bitcoin also dropped below $84,000, adding to the pressure on cryptocurrencies. Several factors, including market trends and economic developments, have contributed to Dogecoin’s price movement.

Dogecoin’s price has fallen to around $0.20, with analysts suggesting that it is following a familiar cycle seen in previous years. Historically, Dogecoin has gone through corrections before rebounding. Crypto analyst Bithereum noted that Dogecoin price was moving within a falling wedge pattern, which indicated that a drop to $0.20197 was likely. This level has been tested, aligning with historical trends where Dogecoin price experiences pullbacks before rallying. Despite the drop, analysts believe Dogecoin could reverse to the upside, potentially reaching $0.45 soon.

Another factor contributing to the DOGE price decline is the decrease in network activity. According to market data, new address creation on the Dogecoin network has significantly dropped from 1.29 million in November to just 30,815. A decline in new addresses suggests lower investor participation, which can weaken buying pressure and lead to price declines.

Dogecoin price recent drop also comes amid broader economic concerns. A major factor influencing the market is U.S. President Donald Trump’s announcement of a 25% tariff on the European Union. His comments raised concerns about potential trade tensions between the U.S. and the EU, which affected global markets, including cryptocurrencies. Following the announcement, Bitcoin price fell below $84,000, dragging the broader crypto market down. Dogecoin saw a decline of over 6%, as traders reacted to economic uncertainty. Some analysts believe that fear surrounding economic policies led to increased selling pressure across digital assets. Concurrently, continued DOGE selling pressure, particularly from large investors, could lead Dogecoin to retest lower levels before stabilizing.

Despite the price drop, technical indicators suggest that Dogecoin price may be approaching a reversal. According to crypto analyst Ali (@ali_charts), the TD Sequential indicator has flashed a buy signal on the daily chart. This indicator is often used to identify potential trend reversals, suggesting that Dogecoin could soon experience upward momentum. Trader Tardigrade