The Dogecoin price has crashed over 12% in the last day, providing a bearish outlook for the foremost meme coin. This price crash has occurred due to several factors including the bearish sentiment following the White House Crypto Summit.
Why The Dogecoin Price Has Crashed Over 12%
CoinMarketCap data shows that the Dogecoin price has crashed over 12% in the last day. This price decline follows the White House Crypto Summit, which sparked a bearish sentiment among crypto investors, leading to a wave of sell-offs. Investors seemed to have expected more from the first-ever summit, which failed to live up to the hype.
It is worth mentioning that prior to the summit, US President Donald Trump had signed an executive order for the creation of the Strategic Bitcoin Reserve and Digital Asset Stockpile. However, this bullish news wasn’t enough to prevent this price decline, suggesting that news was already priced in, possibly from when Trump won the presidential elections last year.
Meanwhile, another reason for the Dogecoin price decline is the market uncertainty sparked by developments on the macro side including Trump’s tariffs on Mexico, Canada, and China. Canada’s new Prime Minister Mark Carney has fueled this ongoing trade war by asserting that his country’s reciprocal tariffs on the US will remain.
Another macro factor contributing to the Dogecoin price decline is US Federal Reserve Chair Jerome Powell’s statement, in which he mentioned that the Committee is in no rush to cut interest rates. As such, it remains unlikely that the Fed will cut rates anytime soon, which is bearish for DOGE and other crypto assets, as investors will remain cautious about allocating their capital to these risk assets.
DOGE Is Nearing A Crucial Support
In an X post, crypto analyst Ali Martinez revealed that the Dogecoin price is nearing a crucial support level at the lower boundary of an ascending channel. He added that holding above $0.16 could fuel a strong rebound. The analyst had also recently mentioned that DOGE could rally to as high as $2.74 if it holds the support at $0.17.
Amid this Dogecoin price crash, there are still some positives for the foremost meme coin. Martinez revealed that the number of active DOGE addresses has surged 270% in the last 24 hours, jumping from 71,750 to 264,000.
Meanwhile, despite the recent decline, DOGE whales still look to be heavily bullish on the Dogecoin price. In another X post, Martinez revealed that the largest whales on the Dogecoin network have accumulated 1.7 billion DOGE in the last 72 hours, as they look to position for a bullish reversal.
At the time of writing, the Dogecoin price is trading at around $0.17, down in the last 24 hours, according to data from CoinMarketCap.
Featured image from Unsplash, chart from Tradingview.com
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