Emily Walker
This week, the price of Dogecoin fell to $0.31 and continues to face the threat of dipping below the critical $0.30 mark. This decline can be attributed to multiple factors, notably broader economic influences.
Causes of Dogecoin’s Drop to $0.31
According to CoinMarketCap, Dogecoin has seen a decrease of over 8%, plummeting to $0.31. This downturn aligns with the anticipation of today’s Federal Open Market Committee (FOMC) meeting, which has generated uncertainty in the market regarding potential changes to interest rates. The Federal Reserve is expected to announce whether it will adjust rate cuts.
Data from CME FedWatch indicates a 99.5% likelihood that the Fed will maintain the current interest rates, creating a bearish outlook in the crypto market. A static rate scenario tends to discourage investment in riskier assets like Dogecoin.
The expectations surrounding these rates have already contributed to a significant selloff in the crypto arena earlier this week, affecting Dogecoin’s value. Additionally, the emergence of the Chinese AI startup DeepSeek has triggered broader selloffs in the market.
This week, DeepSeek AI has gained substantial attention, accelerating sell-offs in US tech stocks and erasing trillions from the stock market. Consequently, the crypto sphere, including Dogecoin, experienced a downturn. Notably, Bitcoin’s price also fell below $100,000 earlier in the week, creating additional downward pressure on DOGE due to its close correlation with Bitcoin.
Potential Upsides for DOGE Amid the Decline
Despite the current downtrend, there are some encouraging signs for Dogecoin. Notably, crypto whales appear to be optimistic about the meme coin, showing signs of accumulation during this price dip. Data from IntoTheBlock indicates that large transactions of DOGE have increased by over 41%, with trading volume reaching $23.35 billion, signaling whale interest.
Crypto analyst Ali Martinez pointed out that during this market dip, whales have acquired 460 million DOGE. Additionally, analyst Trader Tardigrade forecasts two potential bull runs for Dogecoin, noting that the coin has been following a Gaussian Channel pattern. He observed that after exiting the red zone of the channel, DOGE has retested the mid-channel line, suggesting that it could soon experience a significant upward movement.
As of now, Dogecoin is trading at approximately $0.33, reflecting a slight decline of nearly 1% in the past 24 hours, based on CoinMarketCap data.