Memecoin Dogecoin (DOGE) Took a Sharp Hit Today, Dropping 13% and 21% in the Daily and Weekly Charts, Respectively

The bearish sentiment comes as broader market volatility weighs on the cryptocurrency sector.

Memecoin Dogecoin (DOGE) encountered a significant downturn on Monday, with a 13% and 21% decrease in the daily and weekly charts, respectively. This bearish sentiment coincides with broader market volatility impacting the cryptocurrency sector.

The top three cryptocurrencies, Bitcoin, Ethereum, and XRP, experienced a 3%, 15%, and 13% decline in the daily chart.

Technical analysis reveals a bearish momentum for DOGE, with the price trading below key important price levels ($0.4039 and $0.3157) and a Relative Strength Index of 28, indicating an oversold condition.

The price could test lower levels if the current support does not hold, with the next support being at $0.2165 and $0.1759.

DOGE's price struggles come amid a broader crypto market downturn sparked by macroeconomic concerns following Donald Trump's new tariff policies.

The market lost over 6% in capitalization as traders reacted to the latest developments. Meme coins, known for their heightened volatility, were among the hardest hit, with Dogecoin leading the losses.

Adding to the bearish outlook, large DOGE holders offloaded approximately 270 million tokens within a 24-hour period, according to popular crypto market analyst Ali Martinez.

Whales sold 270 million #Dogecoin $DOGE in the last 24 hours!

Elon Musk's Influence on DOGE Price

Dogecoin's price has been heavily influenced by Elon Musk, especially through his social media activity.

His increasing role in the Trump administration adds another layer of influence, particularly as Musk's team has recently gained access to the Treasury's payment system.

The Department of Government Efficiency, an initiative spearheaded by Musk under Trump's directive, was granted access to the federal payment system, the New York Times Reported.

Treasury is the most significant target due to its control over payments, raising concerns about potential misuse of sensitive financial information.

While the Treasury Department insists that no payments have been blocked, the broader impact on financial markets is still unfolding.

DOGE's recent drop has shaken investor confidence, and its next moves will depend on broader market conditions and whether buying pressure returns. If whales continue selling and technical indicators remain bearish, the meme coin could face further downside. However, based on historical patterns, DOGE tends to rebound after sharp corrections, suggesting a potential for recovery.