Dogecoin’s price took a significant hit, dropping over 12% in just one day. This downturn has left many wondering what caused such a sudden fall.
The White House Summit and Market Sentiment
The recent White House Crypto Summit seems to be a major contributing factor. While highly anticipated, the summit apparently failed to deliver the positive news investors were hoping for, leading to widespread selling. This bearish sentiment overshadowed even earlier positive news, like President Trump’s executive order on a digital asset stockpile, suggesting that the market had already factored this news in.
Macroeconomic Factors at Play
The slump wasn’t solely due to crypto-specific news. Global economic uncertainty played a role. Ongoing trade tensions, fueled by tariffs between the US, Mexico, Canada, and China, created a nervous market. Adding to the pressure, Federal Reserve Chair Jerome Powell indicated no immediate plans to cut interest rates, making investors hesitant to invest in riskier assets like Dogecoin.
Dogecoin’s Support Level and Whale Activity
Despite the drop, there are some positive signs. Crypto analyst Ali Martinez noted that Dogecoin is approaching a key support level around $0.16. Staying above this level could trigger a price rebound. He previously predicted a potential rise to $2.74 if the $0.17 support held.
Interestingly, activity on the Dogecoin network is surprisingly high. The number of active addresses has skyrocketed by 270% in just 24 hours. Large Dogecoin holders (“whales”) also appear bullish, accumulating 1.7 billion DOGE in the last 72 hours, suggesting they’re anticipating a price increase.
Current Status
At the time of writing, Dogecoin is trading around $0.17. While the recent drop is significant, the high network activity and whale accumulation suggest the situation might not be as bleak as it initially seems.
