Dogecoin Plunges 16%—Here’s Why Traders Are Still Watching

Dogecoin just took a nosedive—down 16% in a single day. But before you write it off as another meme-coin casualty, here’s why it’s still on traders’ radars.

Volatility? Check. Liquidity? Surprisingly decent. And let’s be honest—in a market where ’fundamentals’ often mean Elon’s latest tweet, DOGE fits right in.

Bonus cynicism: If a 16% drop scares you, crypto might be healthier than we thought—most ’serious’ altcoins do that before breakfast these days.

Why Dogecoin Should Be On Your Watch List

DOGE has garnered quite a fan following in its 11-year history. The original memecoin has even found support from tech billionaire Elon Musk. Musk has publicly stated that Dogecoin (DOGE) is his favorite crypto project. Musk has even enabled DOGE payments for many of his business ventures, such as Tesla and SpaceX merchandise.

Musk’s X social media platform is set to launch a chat feature with Bitcoin-style encryption. The product could set the stage for the social media company to enable crypto payments. X is on the verge of launching a new payment feature called X Money. Many expect dogecoin (DOGE) to be one of the accepted currencies on X Money. Given Musk’s previous decisions, there is a high chance that DOGE will make its way to X Money as well.

There is also a spot Dogecoin (DOGE) ETF application awaiting approval with the SEC. The SEC recently welcomed pro-crypto candidate Paul Atkins as its head. The agency has dropped several crypto-related lawsuits after Atkins took office. There is a high chance that a DOGE ETF will be approved under his leadership. A DOGE ETF could lead to a substantial price rally for the memecoin.

DOGE payments on X and a spot ETF approval from the SEC could lead to DOGE finally breaching the $1 mark. While both developments WOULD be quite bullish, we still do not have confirmation on either one.