It may be time to call the vet. Because Dogecoin is not doing that well, man.
Today’s historic market crash caused nearly all digital assets to lose a substantial amount of value. Bitcoin itself saw a 10% drop throughout this Friday, while altcoins took an even harder hit. While the total market capitalization of crypto lost nearly 10% in value, the capitalization of digital assets excluding BTC bled by over 12% in that same timeframe.
And for DOGE, the memecoin was among the hardest hit. Dogecoin dropped by over 26% in a single day, making it one of the worst-performing large-cap assets in the entire market. Today’s drop drove DOGE to reach one of its lowest values in the year, kickstarting a wave of panic selling and forced liquidations across retail-heavy platforms.
What to Make of Dogecoin’s Drop
A couple of days ago, we talked about how Dogecoin was reaching a make-or-break zone, as an uptrend approached the $0.25 resistance level, forming what looked like an ascending triangle pattern. Well, so much for that! In this pivotal moment for Dogecoin’s price action, it’s clear that it broke — rather than made.
Dogecoin didn’t just fail a breakout at $0.25, however. During its path downward, bears completely broke through several resistances, causing a full structural collapse in DOGE’s short-term price action.
There is a silver lining, though.
$DOGE dropped as low as $0.15 this Friday, but bulls quickly worked to bring the price back closer to $0.20. What that move also did was give the bulls a better fighting chance, as it brought the currency back above its 3-year uptrend line.
However, price action will ultimately have little weight against the massive financial repercussions of a new trade war between the U.S. and China. In the short term, Dogecoin may find temporary relief above its long-term trendline, but relief doesn’t mean recovery. In all likelihood, crypto’s recovery will depend on how geopolitical developments unfold over the coming weeks.
