Dogecoin (DOGE) is facing a steep price correction. The memecoin is trading in the red zone in nearly all time frames. DOGE’s price is down 1.6% in the daily charts, 13.6% in the weekly charts, 12.9% in the 14-day charts, and 21.7% over the previous month. Despite the massive pullback, the memecoin has risen by 40.4% since June 2024.
Why Dogecoin Could See A Recovery Soon
According to X user “Trader Tardigrade,” DOGE’s average directional index (ADX) seems to mirror its 2020 pattern. DOGE was trading at around $0.004 by the end of 2020. The original memecoin’s price skyrocketed to an all-time high of $0.7316 by May 2021. The rise represents a rally of about 18,175%. If DOGE experiences a similar rally, its price could surge to $31.25.
DOGE’s volume also recently breached the $1 billion mark. The volume spike could signal buying pressure.
Dogecoin (DOGE) hitting $31.25 is highly unlikely given the current market environment. DOGE will most likely follow Bitcoin’s (BTC) trajectory over the coming weeks. The memecoin will probably not move unless BTC does.
Cryptocurrencies Fall Amid High Volatility And Uncertainty
DOGE is not the only crypto asset in the red zone. Almost all major cryptocurrencies have faced steep corrections over the last few days. The latest market crash came after the escalation of the Israel-Iran conflict. Market participants may be anticipating a rise in volatility over the coming weeks.
Also Read: Dogecoin: 2 Realistic Price Targets DOGE Could Hit by 2030
Dogecoin (DOGE) and the larger crypto market’s correction could also stem from the upcoming FOMC (Federal Open Market Committee) meeting. Traders will look for clues about the Federal Reserve’s policy changes, if any. Many had anticipated an interest rate cut. A rate cut may be out of the picture for the time being. Trade wars and geopolitical tensions may lead to the financial authorities lowering their GDP growth forecasts.