Dogecoin (DOGE-USD) has been on a downward slide, with its price currently hovering around $0.253969. This decline isn’t happening in a vacuum; several factors are contributing to DOGE’s recent struggles.
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LIBRA Scandal Shakes Confidence
The recent collapse of the LIBRA token has shaken up the memecoin community. Promoted by Argentine President Javier Milei, LIBRA’s value skyrocketed before crashing, leading to fraud allegations and calls for Milei’s impeachment. This fiasco has eroded trust in memecoins, causing investors to tread cautiously, according to the Wall Street Journal.
Bitcoin Decline Dampens Enthusiasm for Altcoins
Beyond specific scandals, the broader cryptocurrency market is experiencing a downturn. Bitcoin’s recent dip below $95,000, influenced by inflation concerns and potential Federal Reserve rate hikes, has cast a shadow over the entire crypto landscape. As Bitcoin often sets the market tone, its decline has dampened enthusiasm for altcoins like Dogecoin.
Dogecoin Whale Activity Declines
On-chain data reveals a significant drop in large-scale Dogecoin transactions, according to Coinspeaker. Whale activity has decreased by nearly 88% since November 2024, suggesting that major holders are either offloading their positions or staying on the sidelines. This reduction in big-player involvement can lead to decreased liquidity and increased price volatility.
Dogecoin’s Technical Analysis Points to Resistance
From a technical standpoint, Dogecoin faces hurdles. Analysts note on X that DOGE needs to surpass resistance levels at $0.2560 and $0.2600 to initiate a meaningful recovery. Failure to break through these points could result in further declines, with support levels at $0.2480 and $0.2420 being critical to monitor.
In summary, Dogecoin’s recent price drop is the result of a combination of market-wide issues, specific events shaking investor confidence, and technical challenges. At the time of writing, Dogecoin is sitting at $0.2539.
