Dogecoin (DOGE) Plunges Below Key Support as Meme Sector Valuations Shed $15B

Dogecoin [DOGE] has plunged below a key support level on the 1D chart, after a 50% decline from its Q4 peak

Dogecoin [DOGE] dropped below a key support level on the 1D chart after a 50% decline from its Q4 peak, with $0.20 now emerging as the third crucial floor this year.

Dogecoin [DOGE] dropped below a key support level on the 1D chart after a 50% decline from its Q4 peak, with $0.20 now emerging as the third crucial floor this year.

Meme-sector valuations have plunged $15 billion in a week, with DOGE alone decreasing by $8 billion. As the demand-supply imbalance enforces lower lows on the cryptocurrency, its ability to sustain above this level faces a serious test.

Meme-sector valuations have plunged $15 billion in a week, with DOGE alone decreasing by $8 billion. As the demand-supply imbalance enforces lower lows on the cryptocurrency, its ability to sustain above this level faces a serious test.

Beginning with the slowing network growth, new address creation collapsed from 1.29 million at $0.38 in November to just 31K at press time—a 97% decline.

Beginning with the slowing network growth, new address creation collapsed from 1.29 million at $0.38 in November to just 31K at press time—a 97% decline.

As hodlers unloaded and fresh inflows remained weak, the demand-supply imbalance was forcing DOGE into lower lows.

As hodlers unloaded and fresh inflows remained weak, the demand-supply imbalance was forcing DOGE into lower lows.

Dogecoin price chart (Credit: TradingView)

Unless network activity saw a meaningful rebound, Dogecoin’s long-term trajectory remained bearish.

Unless network activity saw a meaningful rebound, Dogecoin’s long-term trajectory remained bearish.

The chances of reclaiming its $0.48 post-election peak appeared distant, while the highly anticipated $1 target remained highly elusive.

The chances of reclaiming its $0.48 post-election peak appeared distant, while the highly anticipated $1 target remained highly elusive.

But the big question was—will DOGE flip $0.20 into support?

Amid the broader market meltdown, Dogecoin erased 18% of its weekly gains, liquidating $7.64 million in long positions over the past 24 hours.

Amid the broader market meltdown, Dogecoin erased 18% of its weekly gains, liquidating $7.64 million in long positions over the past 24 hours.

Network data revealed that DOGE holdings in 1M-10M token wallets had plunged to a six-month low, shedding over 460 million coins.

Network data revealed that DOGE holdings in 1M-10M token wallets had plunged to a six-month low, shedding over 460 million coins.

Moreover, a major whale wallet in the 100M-1B range had unloaded a staggering 6 billion DOGE since the post-election rally, amplifying the selling pressure.

Dogecoin: A closer look at the price action

Source: Santiment

In the near term, a rebound to $0.25—its previous resistance—remained uncertain amid weak accumulation and unfavorable macro conditions.

In the near term, a rebound to $0.25—its previous resistance—remained uncertain amid weak accumulation and unfavorable macro conditions.

Should external headwinds worsen and Bitcoin [BTC] drop below its $84K support, Dogecoin could face significant challenges in defending its $0.20 price floor.