The price of Dogecoin (DOGE) has dropped by around 10% over the previous twenty-four hours, which is in line with a more widespread sell-off that has been observed across the cryptocurrency market. Dogecoin (DOGE) is up strongly on Wednesday.
Frenzied trading circumstances have been sparked as a result of concerns that the United States Securities and Exchange Commission (SEC) could not approve spot Bitcoin exchange-traded funds (ETFs) in the very near future. Yahoo reports that spot trading volumes for Dogecoin have reached their greatest level since the 11th of December, with a total of about one billion dollars being traded across various exchanges so far on Wednesday.
The price of Dogecoin began the day higher than $0.09, and it fell as low as the $0.076s before climbing back up to about $0.082 throughout the course of the day.
According to coinglass.com, the dramatic decline resulted in leveraged Dogecoin long futures contracts worth roughly $10 million being wiped out on Monday. This was the largest one-day-long liquidation event that had occurred in more than three months.
Do you think there will be further declines in the price of Dogecoin (DOGE)?
The most recent decline in the price of Dogecoin gives credence to bearish price formations that have been displaying warning flags over the past few days.
First and foremost, ever since the price of Dogecoin reached its highest point in December, it has remained consolidated within a bearish descending triangle pattern.
Secondly, soon before the end of the year 2024, Dogecoin saw a price drop that was below an uptrend that had been in effect since October.
The significant decline that occurred on Wednesday below the critical short-term support in the $0.088 level provided further evidence that the near-term technical bias is likely to be negative.
In the near future, price forecasts may continue to be pessimistic, and it is possible that DOGE may see more declines.
Will Dogecoin Reach $1 in the Year 2024?
Although the extremely short-term future for Dogecoin may seem gloomy, this is primarily due to technical factors. Assuming that the overall cryptocurrency bull market continues to be volatile, it is likely that dips will not be very severe or endure for an excessively long period of time.
Therefore, Dogecoin is a good candidate to perform well as risk appetite throughout the cryptocurrency market improves this year in conjunction with the introduction of spot cryptocurrency exchange-traded funds (ETFs) and a rate-cutting cycle from the Federal Reserve.
In light of the fact that Dogecoin, for the most part, was unable to keep up with the significant price increases that Bitcoin (BTC) and Ether (ETH) experienced in 2023, it is possible that Dogecoin may be considered a rather attractive value bet considering the current market conditions.
In the year 2021, the market capitalization of Dogecoin momentarily hit $82 billion.
In the event that the cryptocurrency is able to achieve this level in 2024 or 2025, there is a possibility that DOGE may reach $1 dollars.
As of right now, there are around 142 billion Dogecoins in circulation, which means that in order for each token to be worth $1, the market capitalization of DOGE would need to reach a total of $142 billion.