Dogecoin price dropped for two consecutive days as cryptocurrency prices plunged and as odds of a DOGE ETF approval crashed on Polymarket. DOGE, the biggest meme coin, dropped to $0.3150, down 35% from its highest level this year.
Dogecoin’s crash was mostly caused by its correlation with other cryptocurrencies. Investors booked profits following the strong rebound before Christmas. Bitcoin moved from near $100,000 on December 24 to $95,000. Most other cryptocurrencies, like Ethereum and Shiba Inu, also dropped in price.
Another reason is the odds that the Securities and Exchange Commission (SEC) listing the DOGE ETF dropped sharply on Polymarket. These odds now stand at 20%, much lower than the November high of 32%.
Crypto investors believe that the Securities and Exchange Commission (SEC) under Paul Atkins will differ from that of Gary Gensler. They expect the agency to approve spot ETFs faster than Gensler did.
To some extent, a Dogecoin ETF would make sense because it is a proof-of-work (PoW) cryptocurrency like Bitcoin. However, the SEC does not view it as a financial security like Solana and Ripple (XRP), which makes the approval path easier.
Additionally, Dogecoin is one of the biggest cryptocurrencies in the industry, with a market cap of over $46 billion.
Dogecoin is also relatively politically connected because of Elon Musk, the wealthiest person in the world. Musk, who popularized the coin, has emerged as one of Donald Trump’s closest advisors. He will also lead the Department of Government Efficiency (DOGE), which is tasked with reducing government costs.
Dogecoin price analysis
DOGE chart by TradingView
The DOGE price has crashed from a high of $0.4840 earlier this month to the current $0.3150. It has moved below the 50-day moving average and is attempting to exit the Ichimoku cloud indicator.
The coin has moved below the 38.2% Fibonacci Retracement level. Most importantly, it has formed a bearish flag chart pattern, a popular bearish sign in the market. Therefore, the coin will likely have a bearish breakout, with the next point to watch being at $0.2625, which is 16% below the current level. The bearish view will become invalid if the coin rebounds above $0.35.
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