The beloved meme cryptocurrency Dogecoin (DOGE) has seen a significant price drop of over 6% in the past day. This downswing can be attributed to the recent pullback in the price of itcoin">Bitcoin, the largest and most influential digital asset.
When itcoin">Bitcoin experiences a price correction, as it has by falling from around $66,000 to under $64,000 recently, altcoins like Dogecoin tend to follow suit with corresponding declines. The overall crypto market has contracted by over 4% amidst this latest cooling period.
Market analysts point to a few key factors behind itcoin">Bitcoin’s retracement, including investor apprehension ahead of upcoming U.S. inflation data and ongoing geopolitical tensions. Reduced inflows into itcoin">Bitcoin investment products like ETFs have also contributed to lower market liquidity.
Looking ahead, some experts predict Dogecoin could extend its decline to the $0.50 level as traders potentially exit altcoin positions to chase itcoin">Bitcoin’s next upside move. However, other analysts see Dogecoin’s long-term trend as remaining bullish for now.
As Dogecoin’s price remains closely correlated with itcoin">Bitcoin’s movements, the meme coin’s future trajectory will likely depend on the broader crypto market’s direction in the coming weeks.
