Dogecoin faces steep technical selloff risk amid broader crypto market decline

Dogecoin drops 7% as crypto market faces bearish pressure amid regulatory concerns

  • Dogecoin price dropped 11.75% to $0.352 within 24 hours on January 8.
  • Technical analysis suggests potential for additional 25% decline by February.
  • Bitcoin‘s retreat below $100,000 influenced broader cryptocurrency market decline.
  • Strong US economic data contributed to downward pressure on cryptocurrencies.
  • Price chart shows concerning consolidation pattern for DOGE.

DOGE Price Experiences Sharp Decline

The popular meme-inspired cryptocurrency Dogecoin (DOGE) recorded a significant price decrease of 11.75% in a single day, reaching $0.352 on January 8, 2024. This movement aligns with a broader cryptocurrency market correction as Bitcoin retreated from its recent highs.

- Advertisement -

Market Factors Behind the Drop

Recent robust US economic indicators have pressured cryptocurrency valuations across the board. The relationship between traditional economic metrics and digital asset prices continues to demonstrate strong correlation, particularly during periods of market uncertainty.

The technical analysis of DOGE’s price action reveals a consolidation pattern that could signal additional downside risk. Market analysts project a potential 25% decrease in value by February, based on current chart formations and trading volumes.

Historical Context and Market Impact

Dogecoin’s price movements have historically shown sensitivity to broader market sentiment, especially during periods of Bitcoin volatility. The current market dynamics mirror previous correction phases, where altcoins experienced amplified downward movements compared to Bitcoin.

The trading pattern observed on the DOGE/USD versus BTC/USD four-hour chart indicates increased selling pressure. This technical formation, combined with macroeconomic factors, suggests continued market uncertainty in the near term.

For cryptocurrency traders and investors, these price movements highlight the importance of monitoring both technical indicators and broader economic data when making investment decisions.

✅ Follow BITNEWSBOT on Facebook, LinkedIn, X.com, and Google News for instant updates.

- Advertisement -

Consider a small donation to support our journalism

Previous Articles:

- Advertisement -

Latest News

FHFA Orders Fannie, Freddie to Consider Crypto as Mortgage Collateral

The U.S. Federal Housing Finance Agency ordered Fannie Mae and Freddie Mac to consider...

Retail Investors Can Now Buy Tokenized Shares of SpaceX via Blockchain

Retail investors can now buy blockchain-based fractional shares in SpaceX through Republic. These digital tokens...

EU Commission Eases Stablecoin Stance, Calms Bank Run Concerns

The European Commission downplayed the risk of bank runs linked to stablecoins after concerns...

Iranian Hackers Launch AI-Driven Phishing Attacks on Israelis

An Iranian state-backed Hacking group targeted Israeli journalists, Cybersecurity professionals, and academics in a...

Nasdaq Integrates Canton Blockchain for 24/7 Collateral Management

Nasdaq has integrated blockchain technology from the Canton Network into its Calypso platform to...

Must Read

Ethereum Hosting: TOP 10 Companies to Buy Hosting With Ethereum

If you are looking for Ethereum Hosting, you've hit the jackpot. In this article, we will present the 10 Best companies to buy hosting...