Dogecoin experiences significant drop in value on global stock exchange
Dogecoin, the humorous cryptocurrency known for its Shiba Inu dog logo, has experienced a significant drop of over 15 percent, breaking the crucial psychological barrier of 0.10 US dollars. This decline comes amidst panic selling and legal issues surrounding Tesla CEO Elon Musk, contributing to the negative sentiment in the market.
The market was in turmoil over the weekend, with Dogecoin plummeting by about 15 percent on Friday to reach a new 52-week low of 0.09 US dollars. This drop shattered the technical support at 10 cents. The broader crypto market also faced immense pressure, with Bitcoin experiencing losses as well. The Fear & Greed Index dropped to a dismal 6 points, indicating high levels of fear among investors.
The sell-off was driven by a massive outflow of capital, with data showing a collapse of nearly 17 percent in open interest in the futures market, pointing to a rapid unwinding of leveraged positions. Concurrently, the spot market saw sales totaling 400 million US dollars within a 24-hour period.
Amidst the price collapse, mixed signals emerged from Elon Musk’s camp, the most vocal advocate of Dogecoin. The much-anticipated “DOGE-1” moon mission, funded entirely in Dogecoin, has been officially postponed to 2027. While this confirms the ongoing nature of the SpaceX project, the delay tests investors’ patience.
Furthermore, a legal tussle involving Musk’s government initiative “Department of Government Efficiency” (DOGE) has added to the unease. Despite being a political matter, the legal headlines related to the acronym have further weighed on the sentiment for the cryptocurrency.
With the breach of the 10-cent mark, attention now turns to the zone around 0.09 US dollars. Analysts warn that if this support is also decisively breached in the coming days, a test of even lower liquidity zones from previous years may be on the horizon.
In conclusion, Dogecoin has faced a turbulent period marked by significant price declines, panic selling, and legal controversies. The future trajectory of this cryptocurrency remains uncertain as market participants closely monitor key price levels and external developments that could impact its value.
