Dogecoin Drops Over 40% Amid Broader Crypto Market Decline
Over the past 12 days, Dogecoin (DOGE) has declined by over 40%, dropping from above $0.48 on December 8 to $0.2638 by December 20. This downturn is linked to the broader crypto market's reaction to US Federal Reserve policy signals, particularly more hawkish projections from the Federal Open Market Committee (FOMC). The Fed’s December meeting resulted in a widely expected 25 basis point rate cut, but revised future guidance indicated fewer cuts than anticipated, prompting significant selling in risk assets, including cryptocurrencies. Bitcoin (BTC) fell below $93,000, and altcoins experienced -20% drawdowns, with $1.17 billion in long positions liquidated across crypto markets within 24 hours.
How Low Can Dogecoin Go?
Analysts have analyzed DOGE’s decline in light of historical patterns and macroeconomic factors. Technical analyst Kevin (@Kev_Capital_TA) emphasizes that past cycles show Dogecoin typically undergoes multiple significant corrections before reaching cycle tops. He suggests that the current pullback could be part of a normal bull market structure rather than indicative of systemic weakness.
Kevin states that if Dogecoin taps into macro structured support, a 45% correction from its high may be sufficient to resume an uptrend. If DOGE loses $0.26 on a weekly close, it would signal a more concerning market structure. Until then, this decline should be viewed as a standard bull market pullback.
Kevin also highlights Bitcoin’s impact on altcoins, advising traders to consider BTC's price action for insights into the overall market direction.
Balo (@btcbalo), another analyst, stresses the importance of the $0.26 level, indicating that maintaining a weekly close above this level would support a structurally sound market. A successful defense of this zone could facilitate a potential uptrend toward $0.42, which Balo identifies as a critical pivot point for DOGE.
CEO (@Investments_CEO) offers a historical perspective, noting that DOGE’s current pattern aligns with its typical 3-4 year cycle. Referring to past performance, he mentions that after a significant correction, DOGE resumed its rally and broke through its all-time high (ATH), suggesting a similar trajectory could occur around the $0.26 target.
At press time, DOGE traded at $0.26919.
