Dogecoin News: Why Is Dogecoin Price Down Today? Memecoin Market Faces Heavy Selling Pressure

DOGE Drops Over 6% Amid Broader Memecoin Sell-OffDogecoin (DOGE) has fallen over 6% in the last 24 hours, trading at $0.226, as the memecoin market experiences a widespread sell-off. The downturn follows reports linking North Korea’s Lazarus Group to recent rug-pull scams, which have triggered investor concerns and dampened sentiment in speculative assets like DOGE.The decline is part of a broader correction in the memecoin sector, which has collectively lost $4.11 billion in market capitalization over the past day.Memecoins Under Pressure as Market Sentiment ShiftsDogecoin’s losses mirror those of other major memecoins, with leading tokens seeing sharp declines:Shiba Inu (SHIB): Down 5.6%, trading at $0.0000151Pepe (PEPE): Dropped 7.25%Bonk (BONK): Lost 7.55%, making it the worst performer among top memecoinsMemecoins often rely on hype and speculative momentum, but security concerns and scams have weakened investor confidence, reducing capital inflows into these assets.Declining Network Activity Signals Weak Demand for DOGEDogecoin’s on-chain activity also shows signs of waning engagement, contributing to its bearish outlook:Whale transactions (>$1 million) dropped to 66 in February, marking a four-month low.DOGE transaction volumes have declined, indicating less demand for transfers, payments, and trading.Lower activity weakens price support, making it harder for DOGE to regain upward momentum.Open Interest and Funding Rates Indicate Bearish SentimentMarket data from CoinGlass shows a significant drop in Dogecoin’s open interest (OI):OI fell to $2.21 billion on Feb. 24, down from $5.42 billion a month ago.DOGE’s funding rate remains positive at 0.0315%, but well below its December 2024 peak of 2.058%.The sharp drop in OI and funding rates suggests that traders are taking a cautious approach, with reduced demand for leveraged positions.Dogecoin Faces Key Technical Support – A 35% Drop Possible?DOGE is now testing critical support at the 50-week EMA ($0.2197), which aligns with the 0.618 Fibonacci retracement level. A break below this level could lead to:A drop toward $0.1459 (0.786 Fibonacci level)—a potential 35% decline from current prices.Further downside toward the 200-week EMA ($0.1358), a previous breakout zone.The Relative Strength Index (RSI) is at 46.16, signaling neutral momentum, but a drop below 40 could trigger more selling pressure.Can DOGE Regain Bullish Momentum?For Dogecoin to recover, it must reclaim $0.2670 as support (0.5 Fibonacci level). However, if bearish sentiment persists, DOGE may struggle to find buying demand in the near term, according to Cointelegraph.