The broader cryptocurrency market has seen increased volatility, and Dogecoin’s slowdown is part of this trend. The cryptocurrency, known for its meme origins, has shown resilience in recent weeks, with prices hovering between $0.31 and $0.41 since early January.
Analysts suggest that this drop could be a temporary correction, with the potential for a rebound if Dogecoin manages to break above the $0.3650 and $0.3680 resistance levels. Breaking these barriers could pave the way for a recovery towards the $0.40 mark.
Despite the current setback, market sentiment remains mixed. Avinash Shekhar, co-founder and CEO of Pi42, commented: “Dogecoin, meanwhile, has received renewed attention, driven by market hype and historical resilience, with analysts forecasting its potential to reach new all-time highs. This highlights the importance of being careful. and conducting due diligence on digital assets, while balancing optimism and risk.
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Over the past 24 hours, Dogecoin traders have reportedly suffered significant losses, with over $65 million liquidated. This highlights the risks associated with trading meme-based cryptocurrencies, which are often subject to sudden price fluctuations.Read also: Crypto Clash: Melania takes on Trump in high-stakes battle for digital wealthMeanwhile, other major altcoins also saw declines on Tuesday. Solana fell by 2.5%, BNB by 1%, XRP by 0.4%, Dogecoin by 6%, Hedera by 4.36% and Shiba Inu by 3.3%. Meanwhile, the recently launched OFFICIAL TRUMP and Melania Coin tokens plunged 44% and 62%, respectively.
While Dogecoin continues to attract attention, both from retail investors and market observers, its future trajectory remains uncertain. While some analysts are optimistic about its long-term potential, others are calling for caution given the unpredictable nature of the cryptocurrency market.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times.)