Why Is Dogecoin Going Down? DOGE Value Crashes to Nov 2024 Lows Alongside Different Altcoins

On February
24, 2025, Dogecoin (DOGE), the popular memecoin, is experiencing a significant
price slump, currently trading at $0.2330.

A drop to
the lowest levels since early November—over three months—has traders wondering:
Will Dogecoin crash? In this article, we examine why the DOGE price is going
down and what the DOGE price predictions and technical analysis suggest about
its future.

Why Is Dogecoin Price Down
Today?

As of 07:57
AM CET on February 24, 2025, DOGE is priced at $0.2330, based on data from
CoinMarketCap. This figure reflects a decrease from recent highs, with a
24-hour low of $0.2264 and a high of $0.2474, indicating stronger volatility.

The decline
aligns with broader market trends, particularly within the memecoin sector,
which has seen increased selling pressure. This is evident from the 24-hour
trading volume and market cap data, suggesting a bearish sentiment among
traders.

Over the
past 24 hours, the cryptocurrency market has been dominated by declines.
Leading the losses is Solana (SOL), down more than 6% to $161. Dogecoin is also
among the top decliners, dropping nearly 5%. Avalanche (AVAX), Chainlink
(LINK), and Polkadot (DOT) are also experiencing significant declines.

You may also be interested in: Will Dogecoin Reach $10? DOGE Current Price and Predictions for 2025

Why is Dogecoin Crashing: Analysis
of Price Drop Causes

The primary
driver behind DOGE’s price drop is the recent failure of the LIBRA token, a
memecoin promoted
by Argentine President Javier Milei. This event, saw LIBRA surge to a $4.5
billion valuation following Milei’s endorsement before crashing by over 90%.
The crash was triggered by insiders cashing out $107 million and the
development team withdrawing $87 million from liquidity pools, leading to
allegations of a pump-and-dump scheme.

This
failure, occurring around February 15, 2025, has had a ripple effect across the
memecoin market. The LIBRA token’s collapse triggered an intensive sell-off.

Additional
factors include macroeconomic pressures, such as rising Treasury bond yields
and potential new tariffs. These factors have created valuation pressures for
cryptocurrencies, including DOGE, amplifying the impact of the LIBRA token
failure.

Dogecoin Technical
Analysis: Next Downard Target at $0.20

Looking at
Dogecoin’s current technical chart, we can see that on Monday, the price formed
local lows at $0.2265. While the price dipped lower on February 3, briefly
reaching around $0.20, based on closing values, the current level marks the
lowest since early November—over three months ago.

At the
moment, the Dogecoin price is breaking below the support zone near $0.2418,
which was established by the early February lows. If the price closes Monday
below this level, it could pave the way for further depreciation, potentially
toward the psychological threshold of $0.20.

However,
zooming out and analyzing the chart from the first half of 2024, we can see
that the current lows around $0.23 align with the highs from late March. This
level may provide additional short-term support.

In my
opinion, the bulls will only be able to breathe a sigh of relief once
Dogecoin’s price returns to $0.30, where a key resistance zone is located.

Check my other Dogecoin analysis: Will Dogecoin Reach $1? DOGE Latest Price Surge and 2024–2025 Predictions

Bitcoin Price Predictions
and Analyst Insights

Looking
ahead, various platforms and analysts have provided predictions for DOGE’s
price in 2025 and beyond, offering a range of scenarios:

You can
find my in-depth analysis of the price
prediction for Dogecoin for 2025 and 2030 in this article.

These forecasts
highlight a spectrum of possibilities, from conservative growth to significant
increases, depending on factors like market adoption, technological
advancements, and community sentiment.

Will Dogecoin Crash? Conclusion

The current
slump in Dogecoin’s price, trading at November lows on February 24, 2025, is
primarily driven by the LIBRA token failure, which has triggered a sell-off in
memecoins. This event, coupled with broader macroeconomic pressures, has led to
a bearish outlook in the short term.

However,
future predictions for 2025 suggest potential recovery, with some analysts
forecasting prices up to $1.07, offering hope for investors. As the market
evolves, stakeholders should monitor these trends closely, considering both the
risks and opportunities presented by DOGE’s volatile nature.

Dogecoin News, FAQ

Why does Dogecoin keep
going down?

The
persistent decline in Dogecoin’s value stems from a complex interplay of market
factors. The recent collapse of the LIBRA token, which saw a devastating 90%
crash after reaching a $4.5 billion valuation, has created widespread
skepticism in the memecoin sector. This event, coupled with significant
withdrawals by insiders totaling $107 million and development team extractions
of $87 million from liquidity pools, has triggered a broader market selloff.

Will Dogecoin ever go back
up?

While some
projections remain conservative, others suggest significant potential upside.
Technical analysis indicates that a breakthrough above the $0.30 resistance
level would be crucial for renewed bullish momentum. Market forecasts range
from modest estimates of $0.20 to more optimistic projections reaching $1.07 by
the end of 2025.

Why did DOGE crash?

The recent
market downturn for Dogecoin can be attributed to several converging factors.
The cryptocurrency has fallen victim to a broader market selloff, with major
altcoins like Solana experiencing substantial losses exceeding 6%. Technical
analysis reveals that DOGE has broken below critical support at $0.2418,
suggesting potential further decline toward the $0.20 psychological threshold.

Should I sell my DOGE now?

Investment
decisions regarding Dogecoin require careful consideration of current market
conditions and individual risk tolerance. The cryptocurrency’s current trading
level of $0.2330 represents a significant decline from recent highs, with
increased volatility evident in the 24-hour trading range. While some analysts
maintain optimistic long-term projections, the immediate technical outlook
suggests continued downward pressure.

This article was written by Damian Chmiel at www.financemagnates.com.



Source link