Dogecoin Price Drops 6% Amid Worsening Crypto Sentiment

Dogecoin, the largest meme coin in the cryptocurrency market, experienced a 6% decline on January 8, reaching a low of $0.3415, its lowest level in almost a week. This downturn occurred in a high-volume environment, with tokens worth $5.26 billion changing hands, up from Tuesday’s $3.3 billion.

The surge in trading volume suggests that some investors have begun liquidating their positions. Dogecoin’s drop triggered a significant increase in liquidations, with bullish positions worth $20 million liquidated on Tuesday, followed by nearly $15 million on Wednesday. These liquidations marked the largest since December 19.

Market Analysis and Trends

Further data shows that Dogecoin’s weighted funding rate remained positive, indicating reduced demand for long positions. This also reflects increased caution as cryptocurrency prices retreat amid soaring US bond yields.

Some analysts expect Dogecoin’s price to bounce back, given that Bitcoin, which often drives broader crypto market trends, remains in a strong bull market and has formed a bullish pennant pattern, typically signaling more gains ahead.

Dogecoin price action is very similar to one year ago. In November 2023, $DOGE traded up, then dropped and consolidated before a major move up in 2024. In November 2024, Doge traded up higher, then dropped and is now consolidating. Next is a major move up in 2025.

Dogecoin Price Analysis

Dogecoin’s price has pulled back over the past few weeks, falling from a December high of $0.4830 to $0.34. Despite the decline, it remains above the 38.2% Fibonacci retracement level and the 50-day and 100-day moving averages.

The Percentage Price Oscillator indicator has turned bullish, with its histogram staying above the zero line. Given these factors, DOGE is likely to remain in this range before potentially rebounding to last year’s high of $0.4830 in the current quarter.

Here are some key points to consider:

  • DOGE’s price has dropped 6% amid worsening crypto sentiment.
  • The surge in trading volume suggests that some investors have begun liquidating their positions.
  • Dogecoin’s weighted funding rate remained positive, indicating reduced demand for long positions.
  • Analysts expect Dogecoin’s price to bounce back, given Bitcoin’s strong bull market and bullish pennant pattern.

For more news and updates on the cryptocurrency market, visit Global Crypto News.

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