On February 24, 2025, Dogecoin (DOGE) is facing a notable price drop, currently positioned at $0.2330. This decline has led to discussions among traders about the potential for a crash, particularly as the price hits its lowest point since early November.
The ongoing decrease is reflected in the broader market, especially within the memecoin sector, which is currently experiencing heightened selling pressure. The trading volume and market cap statistics indicate a bearish sentiment prevailing among traders.
In the prior 24 hours, the overall cryptocurrency market has seen a downturn, with various digital assets, including Solana (SOL), witnessing losses exceeding 6%. Dogecoin has also fallen by nearly 5%, alongside drops in other altcoins such as Avalanche (AVAX), Chainlink (LINK), and Polkadot (DOT).
A significant contributor to Dogecoin’s current struggles is the recent failure of the LIBRA token, a memecoin that was heavily supported by Argentine President Javier Milei. Initially, LIBRA’s value soared to $4.5 billion due to this endorsement, but it subsequently plummeted by over 90%. This dramatic collapse was exacerbated by insiders liquidating $107 million while the development team withdrew $87 million from liquidity pools. Such actions have raised concerns of a pump-and-dump scheme, resulting in intense selloffs across the memecoin landscape.
Additionally, macroeconomic factors like rising Treasury bond yields and the possibility of new tariffs have imposed further valuation pressures on cryptocurrencies, including Dogecoin, further magnifying the fallout from the LIBRA token failure.
Analyzing Dogecoin’s technical chart, the price has recently established local lows around $0.2265. Notably, there was a momentary drop to the $0.20 mark earlier in the month, suggesting a trend that may materialize again if the price closes below the current support zone of $0.2418. A sustained close beneath this threshold could set the stage for further decline, potentially aligning with the psychological level of $0.20.
Interestingly, data from the first half of 2024 shows that the current lows near $0.23 correlate with earlier highs from late March, which could serve as a short-term support area. Optimistically, a recovery might only be feasible if Dogecoin prices manage to climb back to the $0.30 resistance level.
Looking ahead, several analysts and platforms have made projections regarding Dogecoin’s price in 2025, offering a wide range of potential outcomes. Estimates vary significantly, with some expecting a maximum around $0.39 and minimum figures of $0.25, while more conservative forecasts suggest values might drop to $0.17. Yet, some predictions remain optimistic, forecasting potentials as high as $1.07, contingent on market conditions and community engagement.
The current slump in Dogecoin’s pricing is attributed mostly to the repercussions of the LIBRA token’s failure, combined with broader macroeconomic pressures that have generated a pessimistic short-term outlook. Nevertheless, there are signs of potential future recovery, as various analysts hold varied optimistic forecasts for 2025.
Despite the challenges, the situation demands that market participants closely monitor ongoing developments while being mindful of the inherent risks and opportunities displayed by Dogecoin’s characteristic volatility.