Dogecoin (DOGE) has suffered a sharp decline, dropping between 9% and 15% in recent days, with its price falling below the $0.150 level to trade around $0.1381. This crash coincides with a broader cryptocurrency market downturn that erased over 4.87% in value, resulting in approximately $200 billion in losses.
The downturn is exacerbated by the lackluster launch of new Dogecoin exchange-traded funds (ETFs). Grayscale and Bitwise introduced DOGE ETFs, but they have attracted only $2.16 million in combined inflows, a tiny fraction compared to the debuts of Bitcoin and Ethereum ETFs. Bitwise announced their ETF on X, stating, "We weren’t expecting to launch this product, but the $DOGE community requested, nay demanded, this."
This weak institutional interest highlights skepticism towards memecoins, despite endorsements from figures like Elon Musk. Fund managers appear hesitant due to DOGE's speculative nature and risk constraints in traditional finance.
Technically, DOGE has broken below key support levels, including a bullish trend line at $0.1520. It now trades below the 100-hourly simple moving average, with immediate resistance at $0.1420 and support at $0.1330. Analysts warn that a break below $0.1330 could push prices toward $0.1250.
Amid the crash, Dogecoin founder Billy Markus reacted to claims of market manipulation on X, mocking the sentiment by saying, "remember, all dumps are manipulation, and all pumps are super organic." He emphasized the double standard in how traders perceive price movements, noting that both pumps and dumps can be influenced by factors like market sentiment and whale actions.
Dogecoin's correlation with Bitcoin, ranging from 0.7 to 0.85, exposes it to amplified drops when BTC weakens. Bitcoin itself has fallen by 4.85% to $86,832.84, adding to the selling pressure on DOGE.
