Dogecoin’s price has dropped below $0.20, continuing its downward trajectory despite the US Securities and Exchange Commission (SEC) clarifying that meme coins are collectibles and not securities. This move was expected to provide regulatory clarity, but DOGE remains under significant selling pressure, with the broader crypto market experiencing one of its steepest selloffs.
Currently trading at $0.185, Dogecoin has plunged 10% in just 24 hours, extending its losses to 26% over the past week.
The SEC’s statement has increased the likelihood of a Dogecoin ETF, with Polymarket indicating a surge in odds for approval by July 31. While an ETF could potentially drive DOGE to $1, current market conditions suggest further downside in the near term. Many DOGE holders are already in losses, as reflected by the 30-day Market Value to Realized Value (MVRV) ratio, which shows unrealized losses of 20%. Although such a deep negative MVRV often signals a buying opportunity, weak market sentiment could prolong the bearish trend.
Technical indicators also paint a grim outlook. DOGE’s daily Relative Strength Index (RSI) has plummeted to 23, marking its lowest level since March 2023—when the collapse of Silicon Valley Bank and Signature Bank triggered a major market downturn. If selling pressure persists, Dogecoin could decline to $0.12 soon, with a further plunge to $0.10 or even $0.0085 if key support levels fail.
For a recovery to take place, market sentiment must shift, and buying interest must outweigh panic selling. However, with the crypto market still in a state of fear, the possibility of a near-term rebound for DOGE remains low.
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