DOGE Faces Market Turbulence: A Temporary Setback or Long-Term Concern?

Dogecoin (DOGE) has experienced a significant downturn, dropping 16.8% over the past week and 7.9% in the last 24 hours, mirroring the broader cryptocurrency market correction. Despite this, the memecoin retains an 18.4% monthly gain, trading at 0.19966000 USDT as of May 31, 2025. The market-wide liquidation of $656 million in 24 hours highlights investor caution amid macroeconomic uncertainty, including a US court’s blockage of former President Trump’s proposed tariffs. This article explores whether DOGE’s current slump is a buying opportunity or a sign of deeper market instability.

Dogecoin Falls 16.8% In One Week Amid Broad Crypto Market Correction

Dogecoin has mirrored the broader cryptocurrency market’s downturn, shedding 7.9% daily and 16.8% weekly. The memecoin now trades at levels last seen two weeks ago, though maintains 18.4% monthly gains. Market-wide liquidations totaled $656 million in 24 hours as investors retreated from risk assets.

Macroeconomic uncertainty looms after a US court blocked former President Trump’s proposed tariffs, potentially signaling increased volatility. The crypto market cap dropped 3.9% to $3.47 trillion, with most major assets flashing red. Dogecoin’s correlation with Bitcoin remains high at 0.86, suggesting continued sensitivity to market-wide movements.

Speculation about a potential Dogecoin ETF later this year offers bulls a narrative for recovery. ’The dip represents a calculated risk,’ says BitCoinist analyst Mark Williams. ’DOGE’s historical volatility means today’s lows could become tomorrow’s entry points.’ The coin’s 26.8% yearly gain still outperforms many altcoins despite recent setbacks.

Does the DOGE Price Drop Signal a Crash After Musk’s Exit?

Elon Musk’s departure from his position has sent ripples through the cryptocurrency market, particularly impacting dogecoin (DOGE). The meme-inspired digital asset, which has historically been sensitive to Musk’s public statements and involvement, saw a notable price decline following the news.

Market participants are now questioning whether this downturn marks the beginning of a broader correction or merely a temporary setback. DOGE’s volatility has long been tied to celebrity endorsements and social media trends, making it uniquely susceptible to sentiment shifts.

21Shares Amends Dogecoin ETF Filing Amid SEC Review Process

Asset manager 21Shares has submitted an amended S-1 filing for its proposed Dogecoin ETF, signaling ongoing dialogue with the SEC. The update follows the regulator’s acknowledgment of the initial April 9 submission, which sought to provide institutional investors with direct exposure to the meme cryptocurrency.

Bloomberg analyst Eric Balchunas observed that such amendments typically reflect SEC feedback, suggesting constructive engagement between the parties. The development occurs against the backdrop of delayed decisions on similar filings from Grayscale and Bitwise, with key deadlines extending into August and October.

Market participants view the regulatory back-and-forth as a positive indicator for eventual crypto ETF approvals, though the SEC continues to exercise caution. Nasdaq’s parallel 19b-4 filing remains active in the review pipeline, maintaining prospects for listed trading of the fund.

Dogecoin Forms Ascending Triangle Pattern, Analyst Predicts Breakout to $0.285

Dogecoin (DOGE) is capturing market attention with the emergence of an Ascending Triangle pattern on its daily chart. This technical formation, marked by a rising support trendline and flat resistance, often precedes bullish breakouts.

Trader Tardigrade’s analysis suggests Doge has completed four touches of the pattern’s boundaries, with a fifth touch currently forming. The chart structure implies potential upside toward $0.285 upon confirmed breakout above resistance.

Market participants are watching for confirmation of the pattern, which WOULD signal continuation of DOGE’s upward momentum. The meme coin’s price action remains a focal point for traders anticipating volatile moves in the altcoin sector.