Dogecoin Price Crash: Is DOGE Headed for a Bigger Meltdown?

The Dogecoin (DOGE) price crash has caught the attention of traders and investors, with the token dropping over 10% in the last 24 hours. 

The question on everyone’s mind is: Is this just a short-term dip, or could DOGE be heading for a bigger meltdown? Read this article to find out more!

Dogecoin Price Crash Today

The recent downturn in DOGE’s price isn’t happening in isolation. The broader crypto market has also faced turbulence, following last week’s surge after Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole summit. 

Powell hinted that rate cuts could be on the horizon, potentially as early as September. On Friday, optimism pushed risky assets higher, and Dogecoin saw a sharp spike alongside other altcoins. 

But now, the excitement is cooling down. Investors are trying to gauge how significant the Fed’s rate cuts will be, and that uncertainty has translated into heavy selling pressure for speculative assets like DOGE.

Read Also: Dogecoin Price Breaks Free From Years-Long Downtrend

DOGE Price Performance Today

Source: Coinmarketcap

Looking at today’s chart, the DOGE price dropped from $0.2212 and fell as low as $0.207, before bouncing slightly to stabilize around $0.211. The trading volume also saw a sharp decline, down 20% in the past 24 hours, signaling reduced investor activity.

Currently, the token has a circulating supply of 150.67 billion DOGE, with no max supply cap in sight. While this makes DOGE abundant and accessible, it also creates concerns about long-term inflationary pressure on the asset.

Read Also: How to Buy Dogecoin (DOGE)

Key Factors Behind the Dogecoin Price Crash 

Here’s the key factors behind the Dogecoin price crash today:

1. Fed Rate Cut Speculation

Friday’s spike was based on optimism, but as reality sinks in, investors are questioning whether the rate cuts will be as aggressive as expected. This uncertainty has dragged DOGE down.

2. Stock Market Influence

Both the S&P 500 and Nasdaq Composite saw minor losses today, and since crypto often mirrors equity market sentiment, Dogecoin followed suit with a sharper drop.

3. High Volatility in Meme Coins

As a meme coin, Dogecoin tends to experience larger swings compared to Bitcoin or Ethereum. The lack of strong fundamentals makes DOGE heavily sentiment-driven.

4. Decline in Trading Volume

With daily trading volume dropping to around $3.13 billion, liquidity is tightening. Lower activity often intensifies volatility.

5. Long-Term Supply Concerns

Dogecoin has no maximum supply limit, which means more coins will continue entering circulation. This factor raises questions about its long-term price sustainability.

Read Also: Dogecoin Futures Surge as Market Momentum Returns

Conclusion

The Dogecoin (DOGE) price crash highlights the volatile nature of meme coins and speculative assets. While last week’s optimism about potential Fed rate cuts sparked a rally, today’s reality check has pulled DOGE back down. 

Investors should prepare for continued turbulence, as macroeconomic decisions and market sentiment will remain the main drivers of DOGE’s price movement.

Whether this is just a short-term correction or the start of a bigger meltdown remains to be seen, but one thing is certain: Dogecoin’s journey will continue to be as unpredictable as ever.

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FAQ

What caused the Dogecoin price crash today?

DOGE fell due to uncertainty around Federal Reserve rate cuts, declining trading volume, and overall weakness in the crypto market.

How much is Dogecoin trading at right now?

At the time of writing, Dogecoin is priced around $0.2113, down over 4% in the last 24 hours.

Is Dogecoin still worth investing in?

Dogecoin remains a highly speculative asset. It may provide short-term opportunities but carries significant risk due to its volatility and unlimited supply.

Will Dogecoin recover from this crash?

Recovery depends on broader market sentiment, Fed policy announcements, and renewed retail interest. Meme coins often bounce back quickly but can also decline just as fast.

What is the future outlook for Dogecoin?

DOGE’s future relies heavily on community support, integration in payments, and overall crypto market conditions. Without strong fundamentals, it remains a high-risk investment.