Dogecoin Plummets 21% Amid Global Trade Tensions, Technical Outlook Remains Bearish
Dogecoin (DOGE) has had a huge price drop amid a market collapse, plummeting over 21% and wiping all gains since December 2024.
The fall in the popular memecoin coincides with more general market volatility brought on by fresh U.S. trade tariffs on Mexico and Canada.
DOGE Liquidations Exceed $80 Million
The sharp drop has led to large liquidations; DOGE-related positions have lost approximately $80.91 million in value over the past 24 hours. Part of a more $2.2 billion crypto market wipeout, this liquidation event ranks among the most notable declines in recent memory.
DOGE/USD, which is currently trading at $0.24, has dropped noticeably from its recent near $0.40 position, when it was rejected at the 61.8% Fibonacci retracing level on January 21. Including its 200-day exponential moving average at $0.31, the price has collapsed below numerous important support levels.
DOGE/USD Technical Analysis
Technical indicators paint a bearish picture for DOGE:
- The Relative Strength Index (RSI) currently reads 25, well below the oversold threshold of 30
- Moving Average Convergence Divergence (MACD) shows a sustained bearish crossover
- A major bearish trend line has formed with resistance at $0.27
- Key support levels to watch include $0.22 and $0.20, with $0.18 serving as critical weekly support
Should the present bearish momentum persist, the price might reach lower support levels at $0.185 or perhaps $0.165 in the short future. DOGE would have to pass notable resistance levels at $0.25 and $0.27 if any substantial recovery is sought.
Dogecoin Price Prediction: Long-Term Outlook
Some analysts have hopeful long-term forecasts even with the present gloomy trend. With some technical analysts citing past market cycles that produced rallies of 400–600%, historical pattern analysis points to the prospect for great upside. These projections, meantime, stand in direct contrast to more conservative estimates from sites like CoinCodex, which foresee a February maximum price of $0.3298.
President Trump’s 25% tariffs on Canada and Mexico, which generate worries of a trade war, have been blamed for the larger fall in the crypto market. With macroeconomic development driving risk-off attitude across many asset classes, cryptocurrencies have suffered more severe effects. Although long-term optimistic scenarios exist, the immediate technical view points to DOGE could have to create a strong bottom before any kind of durable recovery can start.
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