Altcoins News

Story: Dogecoin Plunges 7% as Bitcoin Selloff Hammers Memecoins Hard

By Sydney TheCMO

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Dogecoin got crushed Wednesday. The popular memecoin tumbled below the key $0.1218 support level on January 29, dragging down other speculative digital assets as Bitcoin's…

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Trading volumes spiked dramatically during the selloff, with data from CoinMarketCap showing Dogecoin activity jumping well above normal levels.

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Traders didn't waste time repositioning their bets. Major exchanges like Binance and Coinbase reported wild swings in Dogecoin transactions throughout the day.

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Bitcoin hovered around $35,000 on Wednesday, way off its recent highs. That's bad news for risk-on assets like Dogecoin that tend to follow Bitcoin's lead.

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Elon Musk stayed quiet. The Tesla CEO's tweets have moved Dogecoin prices before, sometimes dramatically.

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JPMorgan's team thinks the Bitcoin weakness will keep pressure on memecoins until the flagship crypto finds its footing again.

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Shiba Inu coin also took a beating, falling to $0.0000085. Both tokens face similar trading patterns since they're both driven by speculation and social media hype rather than…

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Coinbase recorded a 15% jump in Dogecoin trading volume compared to last week. That's a lot of activity for a token that's been sliding.

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Reddit and Twitter communities stayed active despite the price action. Dogecoin enthusiasts kept discussing strategies and future price targets, showing the token's grassroots…

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No regulatory changes hit Dogecoin directly. The selloff seems driven purely by market dynamics and investor psychology rather than any new government actions or policy shifts.

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Trading platforms haven't issued specific guidance about where Dogecoin heads next. Nobody wants to make predictions in this kind of volatile environment.

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Volume spikes often signal more volatility ahead as traders try to capitalize on rapid price swings.

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The broader memecoin ecosystem has seen similar patterns before, particularly during Bitcoin's major corrections in 2022 and early 2023.

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Institutional sentiment surveys from Grayscale and other major crypto asset managers indicate growing caution around speculative tokens like Dogecoin.

The Currency Analytics

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