Why Did The Dogecoin Price Crash To $0.31

CoinMarketCap data shows that the Dogecoin price is down over 8% and has crashed to as low as $0.31 this week. This price decline has happened due to several factors

The Dogecoin price experienced a significant drop this week, reaching a low of $0.31 before recovering slightly. Several factors contributed to this price decline.

One key factor was the upcoming FOMC decision, which had created uncertainty in the market. The US Federal Reserve was set to announce whether or not they planned to cut rates.

According to CME FedWatch data, there was a 99.5% probability that the US Fed would keep rates unchanged. This sparked a bearish sentiment in the broader crypto market.

With the Fed keeping rates unchanged, it had a negative impact on the Dogecoin price, as investors were less likely to invest in riskier assets such as DOGE.

Furthermore, the anticipation of rates remaining unchanged had already contributed to a widespread selloff in the crypto market earlier in the week, which also affected the Dogecoin price.

Another factor that led to a wave of selloffs in the crypto market, ultimately impacting the Dogecoin price crash, was the rise of the Chinese AI startup DeepSeek.

DeepSeek AI gained immense popularity this week, which prompted a sell-off in US tech stocks, resulting in trillions of dollars being wiped out from the US stock market.

As a consequence, the crypto market was also affected, leading to this downtrend for the Dogecoin price. It's worth noting that the Bitcoin price had also dropped below $100,000 earlier in the week.

Given the strong positive correlation between DOGE and the flagship crypto, it was likely that DOGE would also experience such downward pressure.

Despite the overall downtrend, there were still some positive aspects for the Dogecoin price.

One positive was the indication that crypto whales remained bullish on the foremost meme coin and appeared to be accumulating during this downtrend.

IntoTheBlock data showed that DOGE’s large transaction volume had surged by over 41%, with $23.35 billion traded during this period, which pointed to whale accumulation.

Crypto analyst Ali Martinez also revealed that whales had bought 460 million DOGE during this Dogecoin price dip.

Meanwhile, crypto analyst Trader Tardigrade asserted that there were two bull runs on the horizon for Dogecoin.

This assertion was made as the analyst revealed that DOGE followed the Gaussian Channel pattern. He added that the meme coin first exited the channel when it was red, followed by a retest of the mid-channel line. With this retest out of the way, DOGE could witness a massive move to the upside next.

At the time of writing, the Dogecoin price was trading at around $0.33, down almost 1% in the last 24 hours, according to data from CoinMarketCap.