Why is Dogecoin price down today?

5 days ago 6

Dogecoin (DOGE) price has dropped by around 12% in the last 24 hours to reach $0.338 on Jan. 21.

The memecoin’s decline appears alongside a broader crypto market selloff, which, in turn, is plunging after Donald Trump’s inauguration as the 45th president of the United States, hinting at a “sell-the-news” event.

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Let’s examine the factors driving DOGE prices lower today in detail.

Trump snubs “crypto” at his inauguration

Dogecoin’s drop in the past 24 hours appeared as Trump’s first set of executive orders made no reference to cryptocurrencies, thus disappointing an industry that for months has rallied behind the president to bring a wave of crypto-friendly policies in the US.

"The market has some great expectations about a Bitcoin strategic reserve and a loosening of regulations around digital assets,” Matthew Dibb, chief investment officer at crypto asset manager Astronaut Capital, told Reuters, adding:

“But it's more likely these developments will be drip-fed over a series of months rather than days. Bitcoin has already retreated ... We are expecting further volatility here and likely a selloff.”

However, unlike the broader crypto market, DOGE already declined ahead of Trump’s oath-taking ceremony. The memecoin formed its local top at $0.434 on Jan. 19 and has since decreased in price by over 22.50%.

Interestingly, around the same time DOGE established its local top, Trump and his wife, Melania Trump, launched their “official“memecoins, which briefly boomed following their debut across crypto exchanges.

However, $TRUMP and $MELANIA memecoins dropped alongside DOGE in the past 24 hours, with -29% and -60% losses.

Elon Musk’s DOGE faces back-to-back troubles

Dogecoin’s decline in the past 24 hours further coincides with Vivek Ramaswamy’s departure from the Department of Government Efficiency (DOGE), a government initiative he originally planned to co-head with Elon Musk.

Ramaswamy announced he would step down to focus on a potential bid for Ohio Governor, leaving Musk as the sole leader of the agency.

Additionally, the Dogecoin price drop followed reports claiming that public interest law firm National Security Counselors will likely sue DOGE, citing the alleged violation of federal transparency laws.

Although Dogecoin has no formal connection to the US government agency, the shared acronym and Musk’s prominent role have tied the two in the minds of traders and the broader Dogecoin community.

Speculation and meme-driven enthusiasm helped Dogecoin rally in 2024 when the department was first announced. However, today’s legal and political challenges appear to be weighing on market sentiment.

Dogecoin risks 40% drop in coming weeks

Dogecoin’s price gains today are part of a consolidation trend occurring inside its prevailing symmetrical triangle pattern.

The symmetrical triangle reflects indecision in the market, with both buyers and sellers testing their limits. A breakout from this pattern could result in sharp price moves in either direction.

The triangle’s height—measured from its widest point—suggests a potential upside target of $0.59 if Dogecoin breaks above the upper trendline. In other words, DOGE/USD could grow by over 70% by February.

Conversely, a downside breakout could push the price toward $0.20, representing a 42% decline from current levels.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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