Despite Elon Musk’s support, Dogecoin has been unable to turn the current decline into a healthy upward trend. Traders are opting for short positions and liquidating long positions, an indication that confidence in the future performance of the meme coin is waning. What will Dogecoin do?
DOGE price drops – Elon Musk crypto in danger?
The Dogecoin price has dropped considerably since Donald Trump’s inauguration. Although the meme coin seemed to recover briefly in mid-February and it is widely known that Elon Musk openly supports Dogecoin, the decline has continued.
At the time of writing, Dogecoin is trading at $0.22921, which means it has dropped 33.5% over the past 30 days. Over the past 24 hours, the meme coin has dropped another 6.4%.
According to the derivatives data analysis on Coinglass, the trading volume has increased by 103.34% in the past 24 hours, while open interest has decreased by 2.69%. This means that fewer new investors are joining, while there is more activity within the crypto.
Dogecoin derivatives data, source: Coinglass
Based on the low long/short ratio of 0.9095 over the past day, we see that traders are currently opening more short positions than long positions. Traders who open short positions often try to book profits in the short term, while traders with long positions have more faith in the future of a cryptocurrency.
The liquidation data from Coinglass also indicates that no less than $7.75 million in long positions have been liquidated in the past 24 hours, compared to $219,910 in short positions.
Dogecoin price prediction
While Dogecoin peaked at $0.48034 at the end of last year, the DOGE price has since more than halved to a current value of $0.22921.
The graph below shows the price over the past month. The moving averages indicate a bearish sentiment. For example, the 200-day EMA is moving above the 20-day EMA and is also quite far apart.
The Relative Strength Index (RSI) of 36.74 is also on the bearish side. A score of 50 is neutral. The current RSI does not yet indicate overselling. This is the case with an RSI below 30.
Currently, the next support level for DOGE is at $0.22294. If it breaks through this level, the bearish trend may continue. Based on the levels the crypto saw in November, it may then encounter the support level at $0.19856.
The tide may also turn again this week. An important resistance level to keep an eye on is at $0.25866. Should Dogecoin break through this level, it may strengthen enough to seek out the next resistance level at $0.28648.
Something BIG is coming, $DOGE fam.
— Ðoge 💯% (@doge100percent) February 24, 2025
What will Dogecoin do?
The recent decline is remarkable considering that the US Securities and Exchange Commission (SEC) recently approved the DOGE ETF applications. This does not mean that approval has been given, but it does mean that the SEC will give a definite answer within a certain period of time. The positive news was therefore unable to restore the Dogecoin rate.
Within the DOGE community, there is still much talk of a possible increase in the near future. However, this will largely depend on the rest of the crypto market.
For example, the overall sentiment on the crypto market is currently fairly bearish. The well-known crypto currencies Ethereum, XRP and Solana, for example, fell this week by 2.16%, 7.37% and 13.73% respectively. Since Dogecoin is a meme coin, it is very sensitive to what the rest of the market is doing.
