Dogecoin Price Tumbles: How Low Could DOGE Go?
Dogecoin’s price has taken a sharp downturn, reflecting broader selling pressure across the cryptocurrency market following hawkish signals from the Federal Reserve.
Over the past five days, DOGE has suffered consistent losses, hitting its lowest point since November 11. The token has dropped nearly 45% from its monthly high, plunging further into bear market territory.
This decline stems largely from heightened fears in the crypto space, fueling panic among investors. Dogecoin's price volatility, often driven by short-term retail activity, has further intensified the sell-off.
DOGE’s Path Through the Wyckoff Market Phases
Dogecoin's current trajectory aligns with the Wyckoff Method, which identifies four market phases: accumulation, markup, distribution, and markdown.
Accumulation Phase (April-November): DOGE experienced minimal price movement.
Markup Phase: A sharp price surge driven by demand.
Distribution Phase: Stabilization as major investors exited positions.
Markdown Phase: Significant price declines as selling pressure outweighs buying interest.
What’s Driving DOGE’s Decline?
Dogecoin’s downturn has been compounded by skepticism surrounding Elon Musk’s controversial Department of Government Efficiency initiative, proposed alongside Vivek Ramaswamy. The plan, aiming to cut $2 trillion in government spending through measures like layoffs, has been met with criticism over its feasibility in the political and regulatory environment.
Key Price Levels to Watch
Recent Peak: DOGE recently reached $0.4853, nearing the extreme overshoot of the Murrey Math lines tool.
Current Support Levels: The token has dropped below its 50-day moving average and a critical pivot point.
Next Key Support: $0.2293, a March high and key horizontal line in the cup-and-handle pattern. A breach below this level could push prices toward $0.1953, a further 30% decline.
