Dogecoin (DOGE-USD) is struggling, falling over 6% in the past 24 hours to $0.226. It’s not alone—the entire memecoin sector is bleeding
Cryptocurrency prices today: Memecoins like Dogecoin (DOGE) fell sharply on Monday, with the broader memecoin market losing over $4 billion in a day.
Memecoins, a class of cryptocurrencies known for their rapid price movements and often-lighthearted themes, experienced a collective downturn on Monday, with significant losses and declining activity. Dogecoin (DOGE), the original memecoin, faced a particular sell-off, falling over 6% in the past 24 hours, trading at $0.226 at the time of writing. This sell-off comes amid a broader downturn in the cryptocurrency market, with several memecoins, including Shiba Inu, Pepe, and Bonk, posting losses ranging from 5-7%.
According to data from CoinGecko, the downturn has wiped out $4.11 billion from the memecoin market in just a day, highlighting the rapid price fluctuations and the cooling speculative hype in the memecoin space.
Several factors are contributing to this sell-off, including concerns over scams and rug pulls in the memecoin market. On-chain investigator ZachXBT has recently highlighted some of these scams, alleging that they may be linked to North Korea's Lazarus Group, raising further red flags and impacting investor sentiment.
As a result, many investors who have suffered losses from these scams may be dumping meme tokens entirely, putting additional downward pressure on Dogecoin's price.
Moreover, there is a broader decline in Dogecoin's network activity, indicating lower demand for transactions and payments. Notably, whale transactions above $1 million on the Dogecoin network have dropped to their lowest level in four months. At the same time, trading volume has also declined significantly.
This decreasing activity aligns with the worsening technical indicators for Dogecoin. The cryptocurrency is currently testing support at $0.2197, and if it breaks below that level, analysts at FxStreet warn that it could drop another 35% to $0.1459 by March.
For Dogecoin to regain momentum, it needs to reclaim $0.2670 as a support level. However, with weak sentiment, declining activity, and mounting fraud concerns, Dogecoin faces a difficult path ahead unless a major catalyst appears.
