Dogecoin Price Dips Amid Broader Crypto Sell-Off
Dogecoin (DOGE) has experienced a significant drop in price, falling around 10% over the past 24 hours. This decline is in line with the broader sell-off seen across the crypto market.
The fear that the US Securities and Exchange Commission (SEC) may not approve spot Bitcoin exchange-traded funds (ETFs) in the near future has led to frenzied trading conditions. Dogecoin has witnessed spot trading volumes of approximately $1 billion on major exchanges, the highest since December 11th.
Starting the day above $0.09, Dogecoin’s price dropped to around $0.076 before recovering to approximately $0.082.
This sharp drop in price has resulted in nearly $10 million worth of leveraged Dogecoin long futures positions being wiped out, marking the highest one-day-long liquidation event in over three months.
Price Prediction – Bearish Outlook for Dogecoin (DOGE)
Dogecoin’s recent price drop confirms bearish price formations that have been indicating warning signs in recent days.
Firstly, since reaching its peak in December, Dogecoin has been consolidating within a bearish descending triangle pattern.
Secondly, Dogecoin broke below an uptrend that had been in play since October at the end of 2024.
The drop below key short-term support at around $0.088 on Wednesday confirms a likely bearish near-term technical bias for DOGE.
As a result, there may be more downside for Dogecoin, and near-term price predictions could remain bearish.
Can Dogecoin Reach $1 in 2024?
While Dogecoin’s short-term outlook may not be favorable due to technical factors, it is likely that any dips will be temporary and shallow as long as the broader crypto bull market continues.
If the crypto market experiences an increase in risk appetite this year, thanks to spot crypto ETF approvals and a rate-cutting cycle from the Federal Reserve, Dogecoin could perform well.
Compared to Bitcoin (BTC) and Ether (ETH), Dogecoin has not kept pace with their significant price increases in 2023. This suggests that Dogecoin may represent a comparatively favorable value bet.
In 2021, Dogecoin briefly reached a market cap of $82 billion. If the cryptocurrency can surpass this level in 2024 or 2025, there is a chance that DOGE could reach $1. Currently, there are approximately 142 billion Dogecoins in circulation, meaning DOGE would need to achieve a market cap of $142 billion for each token to be valued at $1.
Alternative Coin to Consider – Sponge V2 ($SPONGEV2)
While Dogecoin could potentially deliver gains of up to 10x during this bull market, investors looking for even higher returns should consider Sponge V2 ($SPONGEV2).
Sponge V2 is the successor to the popular Spongebob Squarepants-themed $SPONGE token, which achieved a market cap of nearly $100 million in 2023 and provided early investors with gains of around 100x.
$SPONGE token holders will have the opportunity to stake their tokens and receive an equivalent amount of $SPONGEV2 tokens. They will also earn staking rewards (paid out in $SPONGEV2) with a minimum annual percentage yield (APY) of 40%.
The main advantage of $SPONGEV2 over $SPONGE is that it will power a new play-to-earn game, although specific details have not yet been released. The game will have both a free version and a paid version.
Consider exploring Sponge V2 for potential investment opportunities.
Hot Take: Dogecoin’s Price Drop Raises Concerns, But Potential for Recovery Remains
Dogecoin has experienced a significant drop in price, following the broader sell-off in the crypto market. This decline is due to concerns surrounding the approval of spot Bitcoin ETFs by the US SEC. However, while the short-term outlook for Dogecoin may be bearish, there is still potential for recovery.
If the crypto market continues to see increased risk appetite and positive developments such as ETF approvals, Dogecoin could perform well. While it has lagged behind Bitcoin and Ether in recent years, it still has the potential to reach $1 if it surpasses its previous market cap. Additionally, investors looking for higher returns may consider alternative coins like Sponge V2.
Overall, while Dogecoin faces challenges in the near term, its long-term prospects remain optimistic given the ongoing growth of the crypto market.
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