Dogecoin’s recent market performance has taken a sharp downturn, with the popular cryptocurrency dropping 13% on February 3, 2025. The price crash continued for four consecutive days, pushing DOGE to a critical support level at the 200-day exponential moving average. Data shows that 51.81% of traders are currently shorting the cryptocurrency, indicating growing bearish sentiment. The weekly decline reached a staggering 21% as market confidence wavered.
Whale activity has played a significant role in the recent market movements, with large holders selling approximately 270 million DOGE within 24 hours. Despite the selling pressure, 48% of traders maintain an optimistic outlook on potential recovery. Trading volume has increased by 30%, while active addresses saw a 15% rise, suggesting sustained market interest during the downturn. The cryptocurrency showed safe haven asset characteristics similar to Bitcoin during the recent economic uncertainty.
Technical indicators present mixed signals for DOGE’s short-term prospects. The MACD line has crossed above the signal line, traditionally considered a bullish indicator. A double-bottom pattern has emerged in recent trading, while the RSI has climbed from 60 to 68, pointing to growing momentum. The Fibonacci retracement level at $0.213 coincides with a key support zone. The proof-of-work system underlying the network provides security against price manipulation through complex mathematical validation.
Bitcoin’s potential breakout target of $108,000 could influence DOGE’s trajectory, as the DOGE/BTC trading pair has seen a 20% volume increase. Elon Musk’s social media activity continues to impact Dogecoin’s price movements, while broader macroeconomic factors, including new tariff policies, add uncertainty to the crypto market landscape.
The cryptocurrency market faces additional pressure from regulatory developments and geopolitical tensions causing financial market turbulence. Bitcoin’s role as a safe-haven asset during uncertain times may affect market dynamics across the crypto sector.
DOGE price could find support between $0.2165 and $0.1759, levels that traders are closely monitoring for potential price stabilization.
