Dogecoin (DOGE) has been soaking up extra attention from investors, largely thanks to Donald Trump’s appointment of Elon Musk as the head of the Department of Government Efficiency—ironically abbreviated as D.O.G.E. Despite this intriguing connection, the relationship hasn’t exactly translated to a rise in the meme token’s price.
In fact, the entire meme coin market has been under pressure from the liquidity-draining effects brought on by the TRUMP token and other politically-themed tokens that followed. CoinGecko data shows the meme market cap is hovering around $93.5 billion, marking nearly a 10% drop in the last day alone.
### Could DOGE Face a 35% Decline?
Recently, on the X platform, well-known crypto analyst Ali Martinez pointed out a notable correlation between two leading meme tokens, Dogecoin and Pepe. The analyst observed that Dogecoin’s price seems to be reflecting Pepe’s movements.
It’s not uncommon for two tokens in the same category, like Dogecoin and Pepe, to exhibit similar price trends. Although there’s no guarantee that DOGE’s price is strictly mimicking PEPE’s, this apparent connection may offer some foresight into DOGE’s potential path.
Martinez posits that if Dogecoin genuinely follows Pepe’s price pattern, it might be looking at a significant correction. This prediction leans on the fact that Pepe’s price breached a crucial support level around $0.000017 by the end of February.
Once Pepe’s price slipped past this critical support, it tumbled to about $0.000011, a sharp drop of over 35%. This support area is represented around the $0.31 level on Dogecoin’s chart and has historically provided a safety net for DOGE on numerous occasions.
Yet, if Dogecoin traces a similar pattern on its four-hour chart, we could see its price dipping to around $0.2. Unfortunately, there’s little major support in this territory to cushion such a decline, which leaves DOGE exposed to potentially deeper losses.
### Dogecoin Price Overview
Currently, DOGE is priced at approximately $0.305, marking a drop of over 3% in the past 24 hours. This daily performance highlights the challenges the meme coin has been facing, with nearly a 12% decrease over the past week.
After hitting a local peak of $0.46 in early December, Dogecoin’s price retreated to about $0.26 in under three weeks. Since then, it has largely traded sideways, bobbing around the $0.35 mark.
