Dogecoin Price Could Drop 20% If Bitcoin Falls Below $94k
Dogecoin Price Trends
- Currently in a correction phase since December 2024, with a 40% drop since the inauguration of pro-crypto President Donald Trump.
- Price retesting support between 21 cents and 27 cents, aligned with Fibonacci levels.
- Potential for a further 20% decline before a possible bullish trend, similar to prior correction phases.
- High correlation with Bitcoin at 0.97; if Bitcoin falls below $94k, DOGE may retest lower support around 21 cents.
- A consistent close above 30 cents could trigger a rally towards $1.
Network Activity Decline
- Significant drop in on-chain activity; daily transactions fell from over 1.4 million to about 45k since mid-December.
- Futures Open Interest decreased by 54%, from $3.58 billion to approximately $1.49 billion.
Long-Term Outlook
- Dogecoin maintains utility status with over 6.1 million holders despite competition from new memecoins on other chains.
- Continued support from Elon Musk and potential integration into X Payments expected to strengthen fundamentals.
- US SEC has acknowledged spot Dogecoin ETF filings from Grayscale and Bitwise, indicating institutional interest.