Will $DOGE Reach $1 After the Current Correction?

The cryptocurrency market experienced a volatile week, with Dogecoin losing 11% in just 24 hours and over 20% throughout the week. This decline occurred alongside a broader sell-off in Bitcoin, Ethereum, and other major cryptocurrencies.

What Triggered the Drop?

The recent downturn can be attributed to profit-taking following a bull run and the market's response to the Federal Reserve's hawkish stance.

During the latest Federal Open Market Committee (FOMC) meeting, Fed Chairman Jerome Powell suggested that interest rate cuts anticipated for 2025 may be less aggressive than expected.

This announcement dampened sentiment for risk assets, including cryptocurrencies.

Bitcoin, which had surged to an all-time high above $108,000, fell back to $92,000. Ethereum and Solana also saw weekly declines of up to 12%.

Dogecoin faced additional pressure after a security vulnerability was exploited, disabling 69% of its network nodes. Although the issue was resolved, the incident raised concerns about the network's long-term stability.

In the last 24 hours alone, Dogecoin saw $68 million in liquidations, while Bitcoin and Ethereum experienced even larger liquidations of $257 million and $229 million, respectively.

Outlook for Dogecoin

Despite these challenges, analysts are closely monitoring critical price levels, particularly the $1 mark. If the market recovers, Dogecoin could potentially reach $1.50 next year.