Why is Dogecoin price down today?

Dogecoin (DOGE) is underperforming its top-ranking rivals, having fallen over 6% within the final 24 hours to commerce at $0.226.

What to know:

• Dogecoin continues to be in a bull market correction after its 525%-plus rally between August 2024 and December 2024.

• The highest memecoin established its second-highest value peak of $0.484 in December however has declined by greater than 50% since.

DOGE falls alongside different memecoins

Dogecoin’s declines at present are a part of a broader bearish sentiment within the memecoin sector.

Key takeaways:

• Shiba Inu (SHIB), the second largest memecoin by market capitalization, was down 5.60% during the last 24 hours to commerce at $0.0000151. 

• Ethereum-based Pepe (PEPE) has dropped by roughly 7.25% over the identical interval.

The chance-off mode comes amid a sequence of rug-pull scams within the memecoin market.

Key factors:

• Onchain investigator ZachXBT reveals that North Korea’s Lazarus Group is probably going behind a few of the current memecoin rug pulls on Solana.

• Traders who suffered losses in these rug pulls could also be exiting meme tokens altogether.

• Memecoins thrive on hype and optimism, however a wave of scams can flip sentiment bearish.

• This might scale back speculative capital flowing into Dogecoin.

Dogecoin community exercise is declining

DOGE’s value decline at present coincides with a pointy drop in community exercise, which indicators waning person engagement and diminished demand.

What to know:

• Dogecoin’s whale transaction depend (>1 million), at 66 in February, is now the bottom in 4 months.

• Dogecoin’s transaction volumes have declined concurrently, i.e. much less DOGE demand for transfers, funds, or buying and selling.

• When transaction volumes drop, it typically means fewer individuals are shopping for or shifting DOGE, resulting in weaker value help.

Associated: Bitcoin, top altcoins are ripping attention from memecoins: Santiment

Declining Dogecoin OI and funding charges 

DOGE’s bearish efficiency on Feb. 24 has been preceded by a major lower in open interest (OI) and low funding charges.

• The decline in OI and the low funding fee level to a bearish sentiment prevailing available in the market. 

• This means that Dogecoin merchants are both taking a cautious method or that the general curiosity in buying and selling DOGE with excessive leverage has diminished.

DOGE’s value dangers one other 35% drop

Technical indicators now counsel that DOGE is approaching key help ranges that would decide its subsequent transfer.

What to know:

• The 50-week EMA (the purple wave) at $0.2197, which additionally coincides with the 0.618 Fibonacci retracement line, is serving as Dogecoin’s fast help stage.

• A break under $0.2197 might result in a drop towards the 0.786 Fibonacci retracement stage at $0.1459, down by over 35% from present value ranges, by March.

• The draw back goal is nearer to DOGE’s 200-week EMA (the blue wave) at round $0.1358, which beforehand acted as a breakout zone.

• The Relative Energy Index (RSI) is at 46.16, indicating impartial momentum.

• Extra draw back is probably going if the RSI drops under 40.

• To regain bullish momentum, DOGE should flip $0.2670 (0.5 Fib stage) into a brand new help stage.

This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer entails threat, and readers ought to conduct their very own analysis when making a call.