Dogecoin 
DOGEUSD the price fell by around 12% in the last 24 hours to $0.338 on January 21.
The decline of memecoin appears alongside a broader sell-off in the crypto market, which, in turn, is plunging following the inauguration of Donald Trump as the 45th president of the United States, hinting at a “sell-off” event. the news”.
Let’s take a detailed look at the factors that are driving DOGE prices down today.
Trump snubs “crypto” during his inauguration
Dogecoin’s decline over the past 24 hours came as Trump’s first round of executive orders made no reference to cryptocurrencies, disappointing an industry that for months has rallied behind the president to bring a wave of policies favorable to cryptocurrencies in the United States.
“The market has high expectations for a strategic Bitcoin reserve and easing of regulations around digital assets,” Matthew Dibb, chief investment officer at crypto asset manager Astronaut Capital, told Reuters, adding:
“But it is more likely that these developments will happen in small increments over a series of months rather than days. Bitcoin has already pulled back… We expect more volatility here and likely a sell-off.
However, unlike the broader crypto market, DOGE has already declined ahead of Trump’s swearing-in ceremony. The memecoin reached its local high at $0.434 on January 19 and its price has since declined by over 22.50%.
Interestingly, around the same time DOGE was establishing its local top, Trump and his wife, Melania Trump, launched their “official” memecoins, which briefly boomed after their debut on crypto exchanges.
However, memecoins $TRUMP and $MELANIA fell alongside DOGE over the past 24 hours, with losses of -29% and -60%.
Elon Musk’s DOGE faces back-to-back issues
Dogecoin’s decline over the past 24 hours further coincides with Vivek Ramaswamy’s departure from the Department of Government Effectiveness (DOGE), a government initiative he initially planned to co-lead with Elon Musk.
Ramaswamy announced he would step down to focus on a possible run for governor of Ohio, leaving Musk as the sole leader of the agency.
Additionally, Dogecoin’s price drop follows reports claiming that public interest law firm National Security Counselors will likely sue DOGE, citing alleged violation of federal transparency laws.
Although Dogecoin has no formal ties to the U.S. government agency, the common acronym and Musk’s important role have linked the two in the minds of traders and the broader Dogecoin community.
Speculation and enthusiasm from memes helped Dogecoin rally in 2024, when the department was first announced. However, current legal and political challenges appear to be weighing on market sentiment.
Dogecoin risks 40% drop in coming weeks
Dogecoin’s price gains today are part of a consolidation trend occurring within its dominant symmetrical triangle pattern.
The symmetrical triangle reflects market indecision, with both buyers and sellers testing their limits. A breakout of this trend could result in sharp price movements in either direction.
The height of the triangle, measured from its widest point, suggests a potential upside target of $0.59 if Dogecoin breaks above the upper trendline. In other words, DOGEUSD could grow by more than 70% by February.
Conversely, a downside breakout could push the price towards $0.20, representing a 42% decline from current levels.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.