Dogecoin (DOGE) has fallen by over 4% in the last 24 hours, currently trading at $0.163. The memecoin has seen a significant 20% decline between March 27 and March 31, driven by technical weaknesses and broader negative sentiment in the cryptocurrency market.
Memecoins Face Widespread Losses
Dogecoin is not alone in its downturn, as most major memecoins have recorded losses over the same period. Shiba Inu (SHIB) has dropped by 4.2%, now trading at $0.00001206, while Ethereum-based Pepe (PEPE) has lost 1.7%. Solana-based Fartcoin (FARTCOIN) has been hit the hardest, posting an 8% decline to $0.4146.
The overall memecoin sector has suffered from a 48% drop in daily trading volume over the past 30 days, indicating a decline in investor interest. Analysts attribute this to increasing macroeconomic uncertainties, particularly concerns over trade policies under former President Donald Trump, which have made investors more risk-averse.
Musk’s Clarification Dampens Speculation
A key factor in Dogecoin’s recent struggles is a statement from Elon Musk, whose influence on the memecoin is well-documented. Speaking at a town hall event in Green Bay, Wisconsin, on March 30, Musk dismissed speculation that the US government was considering integrating Dogecoin into its operations.
Musk, who leads the Department of Government Efficiency (D.O.G.E.) under the Trump administration, clarified that there were “no plans” to use Dogecoin.
“There are no plans for the government to use Dogecoin or anything as far as I know,” Musk stated. “They happen to be similar names, but really, we’re literally just trying to make the government 15% more efficient.”
His clarification ended speculation that his position in the administration might lead to official recognition or adoption of Dogecoin, prompting a wave of sell-offs and further price declines.
Bearish Technical Indicators Suggest Further Losses
Technical analysis indicates that Dogecoin’s price action is following a classic bear flag pattern. On March 31, DOGE broke below the lower boundary of the flag at $0.1773, turning this level into resistance.
Key support levels to monitor include:
- $0.160: Currently being tested as immediate support
- $0.1427: The range low from March 11
- $0.1275: The October 25, 2024, low
A breakdown below these levels could accelerate Dogecoin’s decline, with analysts pointing to a potential drop toward the $0.0876 zone, representing a further 42% decrease from its current price.
Crypto analyst Andrew Griffiths noted the growing bearish momentum, highlighting that Dogecoin’s Relative Strength Index (RSI) has fallen from 52 to 38 since March 26.
“Dogecoin exhibits bearish momentum,” Griffiths wrote on X. “The price is likely to stabilise below the pivot line at 0.1774, paving the way for potential declines to 0.1478 and 0.1283. A daily close below 0.1283 would signal a continued bearish trend toward 0.0850.”
Market Outlook
With the memecoin sector facing declining interest and Dogecoin validating a bearish technical pattern, the short-term outlook remains negative. Unless significant buying interest returns, DOGE may continue to trend lower in the coming days.
