- Dogecoin sees its first major retraction since its rally, losing over 21% in value.
- The memecoin’s price surged after Trump’s election victory but has recently dropped to $0.38.
- Investors see potential in buying the dip, anticipating a rebound.
Dogecoin, the world’s largest memecoin, is experiencing its first major retraction since its incredible rally. On November 5th, DOGE grew substantially, pumped by the victory of Donald Trump against Kamala Harris in the U.S. Presidential election.
At the time, this powerful bullish momentum catapulted the memecoin into its highest price in over 3 years. From November 8 to December 8, the currency gained over 150% in value, rising from $0.19 to nearly hitting the fifty-cent mark.
However, with the recent market retraction, Dogecoin suffered heavy losses. Over the last two days, the currency lost over 21% of its value and is currently trading at $0.38.
While losing the $0.40 margin can be seen as a bad enough hit, the memecoin lost over $16 billion in market capitalization, half of that amount lost today, December 10. Throughout the week, the relative strength index indicator (RSI) showed that Doge reached extreme “overbought” levels—signaling that a price retraction could be imminent.
In truth, the entire cryptocurrency market has seen a retraction on the star of December’s second week. Assets like Solana, XRP, and BNB are down by over 8% in value in the week—while Bitcoin is struggling to hold on to the $96,000 margin with a weekly performance of only a 0.6% increase.
Meanwhile, some investors believe that there is an opportunity brewing to buy dogecoin’s dip, aiming for a potential rebound to its year-to-date high of $0.46 at the next market rally. As of right now, RSI no longer shows any major “overbought” trends.
Adding to this perspective is the fact that Dogecoin is one of the memecoins with the most anticipation building for 2025. The dog-inspired crypto became unintentionally attached to Donald Trump’s presidency, a reward given by a man who’s a major supporter of both Trump and Dogecoin: Elon Musk.
Musk is expected to have a lot of influence over the next government, and even take part in it by leading the Department Of Government Efficiency, or D.O.G.E.
