Highlights:
- Dogecoin price plummets 14% to $0.25 following waning bullish sentiment in the market.
- This is in response to President Trump’s imposed 25% additional tariff on imports from Canada and Mexico, according to a 1 February announcement.
- With the meme coin token oversold, the bulls may initiate a buy-back campaign, causing the Dogecoin price to rebound above the $0.34 mark.
The Dogecoin price has plunged 14% to $0.25 as the crypto market faces a severe downtrend. Despite the plunge, its daily trading volume has soared about 309% to $10.71 billion, indicating heightened market activity.
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The crypto market has slumped more than 10% overall in the past 24 hours, with leading cryptos such as Bitcoin (BTC) and Ethereum (ETH) suffering heavy losses. Bitcoin plunged 4% to trade below the psychological $100K level at $95,048 as of 10:39 UTC. On the other hand, Ethereum has plunged 15% to $2,607.
The rest of the top 10 largest cryptos all suffered 24-hour losses as well. The meme coin sector plummeted 15.3% to a market cap of $77 billion, according to CoinGecko, with Dogwifhat (WIF) the biggest loser among the top 10 meme coins, with a 23% loss.
This is in response to President Trump’s imposed 25% additional tariff on imports from Canada and Mexico, according to a February 1 announcement. He also imposed a 10% additional tariff on China imports.
— Donald J. Trump (@realDonaldTrump) February 1, 2025
DOGE Statistical Data
Based on CoinmarketCap data:
- DOGE price now – $0.25
- Trading volume (24h) – $10.71 billion
- Market cap – $37.22 billion
- Total supply – 147.89 billion
- Circulating supply – 147.89 billion
- DOGE ranking – #8
Dogecoin Price Breaks Below the Descending Channel
The DOGE/USD has broken below key support zones, offering a potential buying opportunity with a favorable risk-to-reward ratio amid short-term bearish sentiment and long-term recovery prospects. Following a breakdown on 2 February, the meme coin has dwindled mercilessly like a dead weight in the air, with the bulls establishing strong support at $0.18 before a rebound to $0.25. The broader trend has remained bearish despite intermittent spikes, such as those seen in mid-Nov- mid-Jan.
The daily chart indicates the Dogecoin price is currently trading at $0.25, reflecting a bearish movement. The price has breached below the lower boundary of the descending channel, and the 200-day MA is presently being tested at $0.22, which has acted as short-term support.
The 50-day MA at $0.34 is positioned above, confirming that the bears attempt to dominate in the short term. However, the support levels at $0.21 and $0.22 remain critical, as a breakdown below these supports could accelerate the bearish trend.
Nevertheless, if DOGE/USD manages to hold within the channel and rebound from the lower boundary, a potential recovery toward the $0.34 resistance level could occur, with further upside targeting $0.38, $0.42, and $0.48 resistance levels.
Conversely, failure to hold above the channel’s lower boundary may lead to increased selling pressure, potentially testing the $0.20 support zone before targeting the nearest support at the $0.18 level. Meanwhile, the volume remains relatively high, suggesting intense market activity, which may cause the meme coin to rebound within the channel.
Can DOGE Rebound to the $0.34 Mark?
A quick look at the RSI Divergence Indicator, at 28, reflects an oversold territory, which may trigger a buy-back campaign. This may result in the rebound of Dogecoin, potentially reclaiming the $0.34 mark. Market participants should closely monitor price action near the $0.34 zone, as a decisive breakout could herald a continuation of Dogecoin’s broader uptrend.
Meanwhile, Coinglass data shows a spike in volume by 309% to $17.24 billion, despite a slight pullback in open interest by 30% to $2.50 billion. This indicates that existing positions are being closed out rapidly, potentially signifying a shift in market sentiment, a possible trend reversal, or profit-taking by traders previously holding long positions, leading to a potential price correction. If the bulls don’t gain momentum at this level, the Dogecoin price could retrace to $0.18 support.
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