Over 51% of traders are currently shorting DOGE as market volatility triggers a major Dogecoin price crash to new lows. Despite experiencing a minor recovery after its decline, Dogecoin continues to struggle, exhibiting bearish momentum.

Traders Short DOGE Amidst Dogecoin Price Crash

The Dogecoin price has crashed again, losing more than 25% of its value in the last 24 hours. This massive price decline has caused panic across the crypto community, with investors exiting the market and selling off their holdings. 

According to X (formerly Twitter) crypto analyst KrissPax, the Dogecoin sell-off has persisted for four consecutive days as investors aim to profit from earlier gains and avoid losses. Each price decline in the popular meme coin has pushed it to lower lows, towards the $0.24 range. 

The analyst also disclosed that the meme coin has failed to hold onto any distinct support level, consistently shedding a percentage of its value daily. Due to this bearish trend, the analyst questions if the meme coin has finally achieved its market bottom and could initiate a potential price reversal upwards. 

Opposing this optimistic projection, Coinglass data reveals that 51.29% of all traders, as of writing, are betting on further declines in the Dogecoin price. This signals a lack of confidence in Dogecoin’s short-term recovery and future price outlook. 

While some traders had hoped for stabilization or even a rebound to new highs, DOGE’s market momentum remains weak. Coinglass has revealed that 48% of traders are still optimistic about Dogecoin’s potential to recover and execute another price rally to new levels. 

Currently, selling pressures in the DOGE price have raised concerns among crypto members. Many advise investors to take the recent price crash as a buying opportunity and HODL for the long term. They warn investors to refrain from selling their tokens to prevent whales from accumulating more.

While the Dogecoin price declines and retail traders sell off their tokens, whales are taking the opposite approach, accumulating more DOGE tokens despite the downturn. These large-scale investors are taking advantage of low prices to increase their holdings, hoping to make significant gains once prices stabilize and recover again. 

Analyst Says DOGE Needs A $0.25 Breakout

While commenting on Dogecoin’s recent market crash and bearish momentum, a crypto analyst identified as ‘AlgoXTrading’ on X has outlined two key levels that could trigger a positive shift in the meme coin’s trajectory. The analyst pointed to the $0.19 support level as a critical area, suggesting that a price reversal could be imminent if the altcoin holds above it. 

Additionally, he predicted a possible breakout to $0.25, emphasizing that surpassing this level is crucial for DOGE to regain its bullish momentum. Expressing confidence in Dogecoin’s future potential, the analyst mentions bullish factors like Elon Musk’s influence catalyzing a possible price rally. He also revealed that historically, the DOGE price has “always rebounded harder than expected.”

Featured image from Adobe Stock, chart from Tradingview.com

Bitcoin, Ethereum, and the broader crypto market have experienced massive price crashes, dropping to levels not seen in a while. This development is due to macroeconomic factors which have sparked a wave of sell-offs among crypto traders. 

Why Bitcoin, Ethereum, And The Broader Crypto Market Is Crashing Today

CoinMarketCap data shows that the crypto market has dropped by over 10% in the last 24 hours. Specifically, Bitcoin has crashed by over 6% and dropped to as low as $92,000, while Ethereum has crashed by 20% and dropped to as low as $2,400. This price crash follows US President Donald Trump’s tariffs on Mexico, Canada, and China.

Over the weekend, Trump announced a 25% tariff on imports from Mexico and Canada and a 10% on imports from China. The US President also threatened to impose tariffs on the European Union (EU). In response to this development, Mexico and Canada have also imposed retaliatory tariffs on the US. Meanwhile, China has also threatened to respond to these tariffs. 

This has brought about a potential trade war, which is bearish for risk assets like Bitcoin, Ethereum, and other cryptocurrencies. Trade wars could negatively impact the economies of the countries in question and have raised concerns about stagflation and recessions. Bearing this in mind, traders have moved to offload their coins in fear of the unknown. 

Renowned author and finance expert Robert Kiyosaki had warned about an impending crash for Bitcoin, Ethereum, and the broader crypto market due to these tariffs. However, he added that this was an opportunity to buy these assets on sale rather than panic. According to him, the real problem is debt, which will only get worse. As such, he expects these crypto assets to become more valuable over time. 

Bitcoin, Ethereum, and the broader crypto market still risk suffering more sell pressure depending on how the stock market reacts to these tariffs. Moreover, institutional investors are invested in Bitcoin and Ethereum through ETFs, which could spark another wave of sell-offs as they offload their shares in these funds. 

Donald Trump Comes Under Fire

Members of the crypto community have criticized Donald Trump, seeing as the ‘pro-crypto’ US president has indirectly contributed to the downtrend that Bitcoin, Ethereum, and the broader crypto market have faced. Even before now, there has been a bearish sentiment in the crypto market, as the president seems to be stalling on creating a strategic Bitcoin reserve.

Although Trump signed an executive order that raised the possibility of the creation of a national crypto stockpile, market experts like Galaxy Digital’s Head of Research Alex Thorn have explained that this stockpile is far off from a strategic reserve. Meanwhile, Trump has also been criticized for the creation of his TRUMP meme coin, which is believed to have drained liquidity from Bitcoin, Ethereum, and the broader crypto market.

Featured image from Unsplash, chart from Tradingview.com

A Dogecoin whale sent shockwaves across the meme coin market on Monday, dumping a staggering 200 million tokens to Binance. Primarily, as the dump occurred amid a broader market crash in light of Trump’s new tariffs, market watchers convey severe concerns over future price movements. Notably, DOGE price tanked nearly 20% in the past 24 hours as of press time, in sync with the broader crypto market crash.

Dogecoin Whale Dumps Heavily Raising Market Concerns

According to an X post by Whale Alert on February 3, a Dogecoin whale offloaded 200 million tokens worth $49.94 million to the crypto exchange giant Binance. Notably, the wallet address “DU8gPC5m” was recorded to have made the transaction.

For context, usual market sentiments remain bearish in light of such massive whale dumps, signaling a loss of large-scale investors’ confidence in the asset. Moreover, the massive dump also adds to a coin’s exchange supply, negatively impacting tokenomics. As a result, the DOGE whale dump raised severe concerns about future movements amid a broader market crash.

Crypto Market Slumps Amid Trump’s New Tariffs

CoinGape reported that the crypto market crashed as the week kicked off amid broader macroeconomic developments. Bitcoin swooped to a $91K low intraday, whilst meme coins mirrored a bearish trend. This bearish action is primarily attributed to Donald Trump announcing new import tariffs recently, sending shockwaves across global markets.

As a result, even the cryptocurrency sector took a hit, with massive liquidations occurring over the past day. The Dogecoin whale’s massive dump amid the current bearish market trend further solidifies investors’ cautiousness on the meme-themed asset.

DOGE Price Crashes

At the time of reporting, DOGE price lost 19% of its value and exchanged hands at $0.247. The meme coin’s intraday bottom and peak were $0.2117 and $0.3043, respectively.

A recent CoinGape report revealed that Dogecoin’s price slumped amid massive liquidations, declining OI, and the broader crypto market trend. The Dogecoin whale’s massive dump also aligns with this bearish dynamic.

However, it’s worth keeping in mind Elon Musk’s DOGE-related developments have managed to help the meme coin secure a prominent spot on traders’ radars. A DOGE price analysis by CoinGape revealed that in light of the D.O.G.E. department’s success in saving Americans $1 billion, positive sentiments over long-term prospects prevail. Nevertheless, traders and investors continue to monitor the token, expecting price shifts amid dynamic market trends.

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Coingape Staff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.