The Dogecoin Price Has Crashed Over 12%

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

The price of Dogecoin has crashed by over 12% in the last day, providing a bearish market outlook for the foremost meme coin. This price decline comes following the White House Crypto Summit, which sparked a bearish sentiment among crypto investors, leading to a wave of sell-offs.

Why Has The Dogecoin Price Crashed Over 12%?

As per data from CoinMarketCap, the price of Dogecoin has decreased by over 12% in the last day. This price decline follows the first-ever Crypto Summit held at the White House, which sparked bearish sentiment among crypto investors, who expected more from the summit.

Following the news, a large-scale selloff unfolded in the crypto market, with several digital assets like Bitcoin and Ethereum also reporting price declines.

It is worth noting that prior to the summit, US President Donald Trump 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 the news was already priced in, possibly from when Trump won the presidential elections last year.

The macroeconomic uncertainty sparked by developments on the macro side including Trump’s tariffs on Mexico, Canada, and China, might also be a reason for this price decline. 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 factor that could be attributed 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.

The crypto community is now awaiting the release of the Consumer Price Index (CPI) data, which is expected on Wednesday. Economists polled by Dow Jones are predicting a 0.3% increase in the CPI for July.

DOGE Is Nearing A Crucial Support

In an X post, crypto analyst Ali Martinez stated that the price of Dogecoin 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.

"Dogecoin is approaching a crucial support level at the lower boundary of the ascending channel. Holding above $0.16 in the coming days could set the stage for a swift and substantial rebound. Alternatively, a breach below this level might open the door for further price declines," Martinez said.

The analyst had also recently mentioned that DOGE could rally to as high as $2.74 if it holds the support at $0.17.

"The meme magic is strong with this one. If Dogecoin manages to maintain the support at $0.17, we might witness a magical rally to $2.74, fueled by the lower boundary of the long-term channel and the Fib level," Martinez added.

Amid this 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.

"Dogecoin's network activity is heating up. The count of active addresses has skyrocketed by 270% in the last 24 hours, surging from 71,750 to 264,000. This surge in activity could indicate an increase in trading and user engagement on the Dogecoin network," Martinez said in another X post.

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.

"The largest whales on the Dogecoin network have been quietly accumulating a massive amount of meme coin. In the last 72 hours, they've added a staggering 1.7 billion DOGEs to their collective holdings as they position for a bullish reversal," Martinez said.

At the time of writing, the price of Dogecoin is trading at around $0.17, showing a decline of 12.61% in the last 24 hours, according to data from CoinMarketCap.