Dogecoin’s value has tumbled, shedding 30 percent over the past month and sinking to its lowest level in four months. The cryptocurrency now hovers around $0.1715, continuing its steep decline after losing nearly 10 percent in the past 24 hours. With trading volume surging to $2 billion amid frantic activity, investors are bracing for further losses.
The sell-off has triggered a wave of liquidations totaling $22 million in the past 24 hours alone, according to CoinGlass data. Over the past week, liquidations have reached $78 million, reflecting heightened volatility and investor unease. Despite the downturn, Dogecoin remains among the top 10 cryptocurrencies by market capitalization, with a current valuation of $25.45 billion.
Liquidations Mount as Investors Flee
The dramatic price drop has forced many traders to close their positions, adding to downward pressure. Of the nearly $22 million in liquidations over the past day, $18.51 million came from traders who bet on Dogecoin’s price rising. Another $3.43 million in short positions were also liquidated. The surge in forced sell-offs underscores the risks in the crypto derivatives market, where leveraged bets can quickly unravel amid steep declines.
The technical outlook suggests Dogecoin’s descent may not be over. The cryptocurrency is approaching a critical support level at $0.142, a threshold that could determine whether the slide accelerates. If breached, further losses could follow as traders react to worsening market conditions.
From Post-Election Surge to a Sudden Reversal
Dogecoin’s recent struggles mark a stark contrast from its post-election rally. When Donald Trump took office in January, his creation of the Department of Government Efficiency (DOGE) sent the meme coin soaring. The price surged from $0.15 in November 2024 to a peak of $0.47, driven by speculative enthusiasm and renewed investor interest.
At its height, Dogecoin’s market cap exceeded $60 billion. Elon Musk’s endorsement further fueled its ascent, as his past support had repeatedly sparked price surges. But momentum has faded. In the last three months, Dogecoin has lost more than 40 percent of its value, and the selling pressure is showing no signs of easing.
Crypto Market Turmoil Weighs on Dogecoin
Dogecoin’s downturn mirrors a broader slump in the cryptocurrency market. Bitcoin has fallen 4 percent to $83,250, wiping out the gains it saw after Trump announced a “crypto reserve” plan. Ethereum has followed a similar trajectory. However, Dogecoin has been hit particularly hard, with its losses outpacing those of its larger counterparts.
Market participants point to multiple factors behind Dogecoin’s recent woes. The fading of Trump-related hype, Musk’s waning influence on the asset, and broader risk-off sentiment in crypto markets have contributed to its decline. Some investors remain hopeful that new financial products, such as Dogecoin-focused exchange-traded funds (ETFs), could stabilize the asset.
Bitwise has submitted an application for a Dogecoin ETF, and Grayscale recently launched a Dogecoin Trust, moves that signal growing institutional interest. Experts estimate a 75 percent chance that regulatory approval for such investment vehicles will be granted this year. If approved, these funds could introduce new liquidity and rekindle investor demand.
For now, Dogecoin’s trajectory remains uncertain. The rapid pace of liquidations, declining investor sentiment, and technical indicators pointing to further losses suggest the meme coin could face more turbulence ahead.
