The crypto market has seen a steep decline in the last month, with Bitcoin (BTC) dipping below the $80,000 level. This had a cascading effect on other cryptocurrencies, including Dogecoin (DOGE). In the last 24 hours, the worldwide crypto market capitalization has dropped by 4.8%, standing at $2.71 trillion. Dogecoin has not escaped, posting an 8.3% slide in daily graphs, a week-on-week slide of 17.9%, and a plunge of 24.3% in both 14-day and monthly charts.
Crypto Market Volatility & External Influences on Dogecoin
International economic uncertainties have shaped the current market correction, with rising trade tensions being the major driver. The United States has imposed new tariffs on several trading partners, including the European Union (EU), which retaliated with threats of countermeasures. This nascent trade war has caused investors to withdraw from high-risk assets, such as cryptocurrencies like DOGE.
Despite the bearishness, there were remarkable events in the U.S. that may benefit the crypto market. The U.S. government recently announced plans to create a Bitcoin reserve and digital asset stash, a move that has the potential to spur growth in the crypto industry, as highlighted in our previous story. Nonetheless, investor confidence is low, and traders remain cautious, hindering any possible recovery for assets such as Dogecoin.
Amidst this chaos, the DOGE price plunged 7.33%, trading at $0.1616 on Tuesday, March 11. Whilst, the meme coin’s market capitalization dropped to $24.09 billion, according to data from CoinMarketCap. Furthermore, the derivatives market showed negative signs as DOGE futures open interest dipped 3.04% to $1.35 billion, according to Coinglass.
DOGE Price’s Possible Surge to $0.60
Market experts continue to be split about Dogecoin’s short-term path. Crypto analytics platform CoinCodex has estimated a possible spike for the DOGE price, predicting the asset to hit $0.604066 on April 6. If so, it would be a near 300% rise above current levels.
Source: CoinCodex
Nevertheless, specialists warn that such a strong price rise would likely be brief. CoinCodex indicates DOGE might see a correction when reaching the $0.60 point, from where it wouldn’t be able to sustain such gains for too long. Speculations about the potential rally continue as macroeconomic circumstances still place pressure on the overall crypto space.
A number of things may keep Dogecoin from reaching its expected breakout. The ongoing global trade conflicts have instilled uncertainty in financial markets, making it tough for digital assets. Moreover, macroeconomic issues, including inflation and monetary policy choices, continue to affect investor sentiment. However, any positive development on Dogecoin ETF could lead to a major rally for the meme coin, as featured in our recent coverage.
Although DOGE has traditionally exhibited extreme volatility and erratic price movements, whether it can maintain an upward trend is unknown. Until economic conditions settle down, the direction of Dogecoin’s price will most probably be based on outside economic trends and investor sentiment in the crypto market.