Dogecoin Price Set for 23% Drop Amid Whale Investor Struggles
Bitcoin's bearish trend has triggered over $1 billion in forced leveraged liquidations, impacting the memecoin sector significantly. The total market cap for memecoins fell by 20% to approximately $57 billion.
Dogecoin's price dropped more than 12% to around $0.192 after a statement from President Trump regarding a strategic crypto reserve. Despite this, Dogecoin holds a fully diluted valuation of about $28.5 billion and an average daily trading volume of $2.68 billion.
The memecoin's decline coincided with escalating US tariff trade wars, as Canada retaliated against new tariffs imposed by the US.
Technical Analysis
- Dogecoin remains in correction mode but is still in a macro bullish trend.
- The price is currently below a crucial support range of 19 to 21 cents.
- The weekly RSI has dropped below 50%, indicating bearish control.
- Potential for a further drop of 23% towards $0.145, aligned with the weekly Fibonacci Retracement.
- Analyst Ali Martinez suggests a possible rise to $4 if support between $0.16 and $0.19 holds.
Fundamental Outlook
- Dogecoin has attracted significant retail and institutional interest, backed by Elon Musk.
- A proposed rule change to list a Bitwise Asset Management Dogecoin ETF was filed with the NYSE.
- Coinbase will serve as the custodian, with the Bank of New York Mellon managing cash custody.
- Approval odds for a spot DOGE ETF in the US have risen to 66% following recent developments.
- Whale investors have accumulated 1 billion DOGE units in three days, bringing their total to 25.3 billion.