Dogecoin (DOGE), the meme-based cryptocurrency that has captured the attention of retail investors worldwide, took a sharp plunge today, losing more than 10%. At 12:42 PM IST, Dogecoin was trading 10.8% lower at $0.342, down significantly from its previous day’s close. This decline is part of a wave of volatility affecting the broader cryptocurrency market.
The cryptocurrency market has been volatile, and the decline of Dogecoin is reflective of the trend in the overall market. A meme-driven currency with a history of unpredictable price movements, Dogecoin had been relatively stable in recent weeks, trading within a range of $0.31 to $0.41 since early January. However, today’s decline has shaken confidence in its short-term resilience.
What Analysts Are Saying About The Decline
Market analysts say the downward trend in the value of Dogecoin can be just a temporary correction. Avinash Shekhar, Co-founder & CEO at Pi42, emphasized that historically, the currency has shown strong resilience, reminding investors to keep calm. “Dogecoin caught the eye mainly because of hype in the markets and because of its bounce capacity, but at the same time, this should remind investors to be careful in investing in any digital assets.”.
Technical analysis suggests that Dogecoin must break resistance levels at $0.3650 and $0.3680 to stage a recovery. If the levels are surpassed, the cryptocurrency could rebound toward the $0.40 mark, reigniting investor optimism.
Major Losses For Traders Amid Broader Declines
Traders of Dogecoin reportedly incurred liquidations amounting to over $65 million in the last 24 hours, highlighting the dangers of trading meme-based cryptocurrencies. These assets tend to experience sharp price movements, making them exciting and hazardous at the same time for investors.
The other major altcoins also made losses on Tuesday; Solana shed 2.5% in value, BNB dipped by 1%, XRP was down by 0.4%, Hedera shed by 4.36%, and Shiba Inu declined 3.3%. Two newly launched tokens named OFFICIAL TRUMP and Melania Coin crashed quite spectacularly, falling by 44% and 62% in that order.
Dubious Prospects For Dogecoin
Despite the setback at present, Dogecoin still garners significant attention from retail investors and market watchers. Although some analysts remain optimistic regarding its long-term prospects, others are more wary of the risks associated with this market. While the price of Dogecoin remains under pressure, its next moves will most likely depend on broader market trends and the ability to regain key resistance levels.
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