Dogecoin Faces Potential 60% Decline Amid Technical and Political Turbulence
Dogecoin is at significant risk of a 60% crash, following a recent drop to $0.019, its lowest since November 2022. Various meme coins are similarly declining, and Elon Musk’s financial troubles and political tensions could further impact Dogecoin’s value. The formation of a death cross pattern indicates a strong downward trend in the token’s performance.
Dogecoin is currently at risk of a significant decline, with predictions suggesting a potential 60% crash as a rare death cross pattern fails to gain momentum. Recently, the token fell to $0.019, marking its lowest value since November 7 of the previous year, and represents more than a 60% decrease from its peak in November.
This downward trend in Dogecoin’s value aligns with the performance of other meme coins, such as Shiba Inu, Pepe, and Dogwifhat, all of which have seen declines exceeding 50%. Furthermore, the decline of the token correlates with the growing financial strain on Elon Musk, a pivotal supporter of Dogecoin, whose net worth has reportedly decreased by $103 billion this year according to Bloomberg.
Adding to the turbulence surrounding Musk are recent political tensions involving Donald Trump. Reports from The New York Times indicate that Trump has begun to confront Musk regarding his behavior and decisions, leading to potential instability in Musk’s role as head of the Department of Government Efficiency, commonly referred to as DOGE. Current data from Kalshi suggests a 54% probability that Musk may vacate this position by July 2026 due to these escalating tensions.
Dogecoin was established in 2013 and rose to prominence as a meme currency primarily propelled by Musk’s social media influence in 2021. Should Musk remove his support for DOGE, it could trigger psychological impacts that contribute to further declines in the token’s value.
From a technical analysis perspective, Dogecoin continues to exhibit a strong downtrend, with the formation of a death cross pattern nearing completion. This crossover occurs when the 200-day Exponential Moving Average intersects with the 50-day Exponential Moving Average. The last recorded death cross event in July 2024 led to a subsequent price decline of 40% for Dogecoin. The current price sits beneath the 61.8% Fibonacci Retracement level of $0.2360, suggesting that sellers remain dominant in the market. Both the MACD and Relative Strength Index indicators are also in a downward trajectory, targeting a critical support level at $0.1680, which aligns with the 78.6% retracement level. A breach below this threshold could result in Dogecoin’s value plummeting to $0.80, representing a significant 60% drop from current rates.
In summary, Dogecoin’s value faces the threat of a substantial decline, potentially up to 60%, as technical indicators and external pressures converge. The emergence of a death cross pattern, alongside political tensions affecting Elon Musk, suggests challenging circumstances for the token’s future. Investors should remain vigilant and consider these factors as they navigate the volatile cryptocurrency landscape, given the historical implications of similar patterns.
Original Source: crypto.news
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