DOGE prices are down by 5% in the day and by as much as 20% in the month.
The sharp drop comes amid clarification by Elon Musk that the US government will not be using the joke currency.
Dogecoin prices slid by yet another 5% today, compounding its losses for the week to 8% and as much as 20% over the last 30 days.
This makes it the worst performer in the list of the 10 most valuable digital assets, ahead of embattled Ethereum, which has lost 15% over the same period.
The coin now trades around $0.16 and with every bearish news, DOGE slips farther away from the critical support-turned-resistance level of $0.20.
Dogecoin’s recent downtrend is fueled by Elon Musk’s recent comments during a recent town hall.
The tech mogul and head of the Department of Government Efficiency (DOGE) made it clear that there was no relation between D.O.G.E and Dogecoin.
Further saying that the US government has no plans of using the meme coin. These comments have had a bearish impact on the already down-trending DOGE prices.
Other Factors Impacting Dogecoin’s Price
In addition to the MUSK comments macro headwinds continue to have an even bigger impact on DOGE price action.
For the last three months, the most valuable joke currency has bent backward to align with the bearish market trend.
Moving forward, we expect the blowout from the reciprocal tariff announcement coming in less than 48 hours to drag DOGE prices further down.
Dogecoin Price Prediction
Dogecoin’s immediate-to-short-term price action shrieks caution. For more than a month, DOGE has struggled to break above the $0.205 resistance level, while the MACD remains below the signal line, suggesting weak momentum.
Additionally, the RSI is hovering around 40, indicating that DOGE is neither oversold nor showing strong bullish momentum.
The overall structure hints at continued consolidation or potential downside unless strong buying pressure emerges. And this will largely depend on how the crypto market reacts to Trump’s reciprocal tariffs.
In the long run, though, we are bullish about Dogecoin’s price action. We expect it to eventually rebound in reaction to a rallying market that helps it peak at around $1.33 before year-end.
If true, that would mean a more than seven-fold increase in less than a year. The price target of $1.33 even sits close to 100% above the coin’s all-time high of 69 cents.
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