Dogecoin Sees Sudden Price Drop Amid Crypto Market Correction

Crypto Market Correction Impacts Dogecoin (DOGE) and Bitcoin (BTC)

The global cryptocurrency market has experienced a price adjustment, dropping from $3.31 trillion to $3.11 trillion over the past two days. This has led to a decline in the value of coins such as Dogecoin (DOGE) and Bitcoin (BTC).

Bitcoin has fallen below $93,000, while Dogecoin is trading at $0.38, representing a 20% decrease. Analysts anticipate that DOGE will stabilize or move sideways before reaching oversold levels.

Correction Following November Rally

The exceptional price surge in November, triggered by Donald Trump's election victory, has come to an end with the recent correction.

Since November 25, the market capitalization of the crypto market has dropped from a peak of $3.31 trillion to $3.11 trillion on November 27. This indicates profit-taking by market makers and investors following substantial gains in most coins this month.

Impact on Bitcoin and Dogecoin

The correction has delayed Bitcoin's projection of reaching $100,000, as it has retreated to the $91,000 level. Similarly, DOGE's momentum at $1 last week has dissipated, with the coin experiencing a significant decline.

Dogecoin's price correction began earlier than the overall crypto market, dropping to $0.47 on November 23, a 20% decrease. It has since fallen further to $0.38.

Technical Analysis

Prior to the correction, Dogecoin's Relative Strength Index (RSI) reached 85 points, indicating extreme overbought conditions and signaling an impending price correction.

After the decline, Dogecoin has now entered oversold territory, suggesting that the bearish trend may soon end or stabilize within the next few days.

Historical Patterns and Outlook

Historically, the end of the year is a period of reduced activity in the cryptocurrency market as investors prioritize profit-taking and relaxation during the holiday season. Traders should anticipate that Dogecoin and other coins may experience further declines in December.

However, Dogecoin may rebound faster than others due to entering the correction period earlier. It has already gained 6% in the past eight hours.

Positive Outlook for DOGE Holders

DOGE holders may find solace in the positive outlook painted by the coin's affiliation with Tesla CEO Elon Musk. Musk's involvement in the Trump administration could potentially benefit Dogecoin.

At the time of writing, Dogecoin has gained 0.56% over the past 24 hours, trading at $0.3916. Its trading volume has decreased 13.76% to $8.44 billion, while its market capitalization has risen to $57.54 billion.