Why Is Dogecoin (DOGE) Dropping? Explaining the Price Action and Future Predictions

This article dives deep into the latest Dogecoin news, price action, technical analysis, and forecasts to explain why the Dogecoin price is falling

Dogecoin (DOGE) price has been dropping in 2025 as the memecoin faces a triple whammy of miner sell-offs, macroeconomic pressures, and a cooling memecoin market.

Despite this downturn, which saw DOGE crash from November 2024 peaks near $0.47 to current levels around $0.1683, optimism persists among retail traders who are hoping for a recovery in 2025, especially with rumors of a potential Dogecoin ETF rolling in.

However, considering that the cryptocurrency is down 16% over the last seven days and 4.28% over the last 24 hours, according to CoinMarketCap data on March 18, 2025, hopes for a price recovery seem to be quickly fading.

Here’s a breakdown of why Dogecoin price is dropping and what’s next for DOGE in 2025, 2030, and beyond.

Dogecoin Price Drops As Bitcoin Remains In Bearish Trend

The crypto market has been in a correction phase in early 2025, with Bitcoin struggling to maintain key price levels and major altcoins following suit.

Dogecoin, being a fork of LuckyCoin (itself a fork of Litecoin, which stems from Bitcoin), usually mirrors BTC’s price movements closely.

This correlation is evident in the close proximity of their market caps, which currently ranges from $23 billion to $30 billion. However, considering that Bitcoin price stability is crucial for the stability of major altcoins, it’s no surprise that we’ve seen signs of selling pressure on Bitcoin.

In fact, according to recent data, Dogecoin miners have been offloading huge batches of the memecoin, selling 65 million DOGE in a 48-hour period. This move has seen the memecoin price drop toward a critical support zone that ranges from $0.144 to $0.175.

Moreover, while whale activity offers a mixed signal—with some whales accumulating 1.4 billion DOGE, displaying bullish intent—the miner sell-offs appear to be having a bigger impact in the short term.

This explains why we’re seeing a decrease in optimism, which is also being driven by macroeconomic fears and Trump’s policies.

Macroeconomic Impacts Could Affect Dogecoin Price

A report by Bankless Times claims that Trump’s tariff proposals and a "tariff tantrum" could delay Dogecoin’s recovery unless retail investors buy the dip.

Furthermore, the threat of a looming U.S. default and a risk-off sentiment in the market are also impacting digital assets broadly.

Dogecoin is a token that lacks the utility of some major altcoins, rendering it more vulnerable to macroeconomic trends and making it a less attractive investment in times of economic uncertainty.

This is also evident in the fact that several traders are now turning to other tokens like pepecoin or shiba inu due to lack of hype on memecoins.

Despite the efforts of the Dogecoin community to rally support for the memecoin, it appears that they are not managing to counterbalance the FUD (fear, uncertainty, doubt) affecting the memecoin market.

However, considering that Elon Musk, Tesla’s CEO and a long-time DOGE booster, has been known to influence Dogecoin’s price through his tweets and endorsements, one might wonder what role Musk is playing in the memecoin’s downfall.

Elon Musk’s Influence On Dogecoin Is Fading

While it’s true that the retail community adores the memecoin and is known to band together to save it from collapsing, Elon Musk’s bullish bets on Dogecoin have been a major factor in the memecoin’s price surges in the past.

However, with a decrease in optimism towards the memecoin and a yearly low in sentiment at -0.935, it seems that even Elon Musk’s influence is fading.

This lack of hype is also affecting other memecoins in the market, especially considering that the memecoin market itself has seen a decrease in interest.

Dogecoin Technical Analysis Shows Bearish Trend

Technical indicators show that Dogecoin has fallen below its 200-day moving average, and the Relative Strength Index (RSI) signaled overbought conditions earlier in 2025, indicating a sharp price correction.

According to Benzinga, analysts like Ali Martinez have pointed out a breakdown below $0.17 support, with the next key support at $0.16 holding—for now. If this level fails, DOGE could see further price drops to $0.125.

Here’s a glimpse at what technical analysis shows:

Dogecoin Technical Analysis

Dogecoin price broke below a crucial support level at $0.17, continuing the bearish trend as anticipated. The breakdown occurred after bouncing off this