The leading meme cryptocurrency, Dogecoin, has experienced a price decline, dropping 10.3% in the past 24 hours to trade at $0.406. The sharp downturn comes amid broader market volatility, raising concerns about DOGE’s ability to maintain its crucial $0.4 support level.
Technical indicators paint an unfavorable scenario for the popular meme coin. While the current market sentiment remains bullish, Dogecoin’s price volatility has reached 10.75% over the past month, with the asset recording positive movement in 63% of trading days during this period.
The Fear & Greed Index currently stands at 78. This indicates “Extreme Greed” in the market. This heightened level of optimism could potentially signal an overheated market, warranting caution from investors.
Dogecoin could slump further
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Looking ahead, market forecasts suggest further downward pressure. CoinCodex predicts a 6.20% decline by January 9, 2025, with prices potentially falling to $0.381543. Despite this bearish short-term outlook, their analysis suggests the current price point presents a favorable buying opportunity.
The recent price action marks a stark contrast to Dogecoin’s longer-term performance. The cryptocurrency has demonstrated remarkable resilience over the past year, posting gains of 304.1% despite periodic corrections. The monthly chart shows particularly strong momentum, with a 75.4% increase over the last 30 days.
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With the current market dynamics in play, traders and investors are closely monitoring the $0.4 psychological support level. A sustained break below this threshold could trigger additional selling pressure, while maintaining this support could provide a foundation for future recovery attempts.
