Memecoin News: Why Is Dogecoin Price Down Today?

Dogecoin (DOGE) price has dropped by 11.75% in the past 24 hours, reaching $0.352 on Jan. 8. The decline mirrors a broader crypto market slump, driven by stronger-than-expected U.S. economic data and technical factors suggesting potential bearish momentum.What’s Driving Dogecoin’s Price Decline?Macroeconomic Pressure Spurs Sell-OffAs traders reassess the Federal Reserve's interest rate policy, DOGE's price drop aligns with a sell-off across risk assets, including U.S. stocks.Recent U.S. economic data—ISM services and JOLTS job openings—revealed a robust economy, dampening hopes for rate cuts in the near term. In response, the yield on the 10-year U.S. Treasury note spiked to its highest level since May 2024, reducing investor appetite for riskier assets like cryptocurrencies.Long Liquidations Amplify Downward MomentumThe crypto market recorded $710.47 million in liquidations over the last 24 hours, with $631.13 million from long positions. Dogecoin alone witnessed $26.95 million in liquidations, predominantly from bullish bets ($23.85 million).This liquidation cascade, triggered by falling prices, added significant downward pressure on DOGE, exacerbating its decline amid macroeconomic headwinds.Will Dogecoin Price Drop Another 25%?DOGE is currently consolidating within a potential bull flag pattern, a formation that typically follows a sharp price surge. While this pattern is inherently bullish, DOGE has failed to break above the flag's upper trendline, facing significant resistance.If the price continues to slide, it may test the flag's lower trendline near $0.266, which aligns with the 50-period exponential moving average (EMA) on the 3-day chart. This scenario implies a potential 25% decline from current levels by February 2025.Conversely, a breakout above the flag’s upper trendline could push DOGE to $0.830 by March 2025, marking a 140% rally from its current price.Market Sentiment and Key Levels to WatchAs macroeconomic factors and technical patterns continue to influence DOGE, traders should monitor key levels, including the $0.266 support and $0.830 resistance. The broader market's reaction to economic data and liquidation trends will also play a critical role in shaping Dogecoin's price trajectory, according to Cointelegraph.Related News:Why is Bitcoin Down Today? Pressure from Strong Dollar and Inflation Fears – What's Next?Fed Official Predicts Inflation Decline by 2025, Potential Rate CutsWhy Is XRP Price Down Today?