- Dogecoin has dropped 4% on March 31, continuing its recent downtrend amid broader memecoin market weakness.
- Dogecoin faces further downside as bearish technical indicators and declining trader interest weigh on its price.
Dogecoin (DOGE) has taken a significant hit, dropping 4% on March 31 to trade at $0.163. The recent downturn comes as part of a broader sell-off in the memecoin sector, signaling potential further losses ahead.
Dogecoin: Why Is Dogecoin Down Today?
Several key factors have contributed to DOGE’s recent decline, with the biggest catalyst being a bearish technical pattern breakdown. Over the last few days, Dogecoin’s price has dropped nearly 20% from its March 27 peak, raising concerns about an extended correction.
Adding to the negative sentiment, Elon Musk, a well-known Dogecoin advocate, recently stated that the U.S. government has no plans to integrate DOGE into its financial systems. This dampened optimism around institutional adoption, leading to increased selling pressure.
Memecoin Sector Faces Broad Sell-Off
Dogecoin is not alone in its struggles. Other major memecoins are also experiencing declines:
- Shiba Inu (SHIB): Down 4.2% in the past 24 hours, trading at $0.00001206.
- Pepe (PEPE): Fell by 1.7% over the same period.
- Fartcoin (FARTCOIN): The biggest loser among top-cap memecoins, dropping 8% to $0.4146.
The total daily trading volume in the memecoin sector has plunged 48% over the past month, indicating waning investor interest and reduced liquidity.
Macroeconomic Pressures Add to the Decline
Beyond technical and sentiment-driven factors, broader macroeconomic uncertainties are also weighing on the memecoin market. Concerns surrounding President Trump’s trade policies have created a risk-off environment, prompting investors to move away from high-volatility assets like Dogecoin.
What’s Next for DOGE?
Technical indicators suggest further downside potential. If selling pressure continues, DOGE could test lower support levels, possibly falling below $0.16 in the near term. However, any positive developments, such as renewed interest from major influencers or broader market recovery, could help stabilize prices.
For now, Dogecoin remains under pressure, and traders should watch key support and resistance levels for potential buying opportunities.
