Dogecoin (DOGE) Experiences Sharp Decline Amidst Broader Crypto Market Sell-Off

The dog-themed cryptocurrency Dogecoin is experiencing significant losses as the cryptocurrency market faces widespread selling pressure. Following a steep decline at the beginning of the week, DOGE has shed over 15% of its value in the past two days, continuing its downward trend into Tuesday's trading session.

This drop has pushed Dogecoin below its 200-day Simple Moving Average (SMA) of $0.24 for the first time since October 2024. This level had previously served as a strong support for the coin's price.

The broader cryptocurrency market remains volatile, impacting Dogecoin's price. Bitcoin dipped below $90,000, its lowest point since mid-November, and other cryptocurrencies, including Dogecoin, experienced substantial losses. At the time of writing, DOGE is down 14% in the last 24 hours, trading at $0.199. A major index tracking leading digital tokens is on track for its largest four-day decline since early August.

Altcoins, in general, are under pressure as investors shift their focus elsewhere. The sector is still recovering from the Bybit attack last week. Since mid-December, many altcoins have seen price drops ranging from 30% to 80%.

Dogecoin Price Analysis

Dogecoin's downward trend continues. Following a significant shift on Monday, the cryptocurrency fell below its daily 200 SMA at $0.24. This decline continued into Tuesday, with prices reaching lows of $0.195.

Crypto analyst Ali emphasizes the importance of the $0.19 support level. Ali suggests that a breach below $0.19 significantly increases the likelihood of a deeper correction, potentially toward $0.060.

Conversely, a rebound from this support and a recapture of the daily 200 SMA could signal easing selling pressure. In this scenario, Dogecoin might attempt a rally towards the 50-day SMA of $0.30, where it could face resistance.

Source: U.Today