Dogecoin Sinks by 10% WoW over Weak Altcoin Sentiment
Dogecoin (DOGEUSD) has deepened its weekly loss over 24 hours in the crypto market, falling by 10.5% week-on-week (WoW) to $0.123 on Sunday, as adverse sentiment surrounding altcoins has considerably weighed on its value.
The cryptocurrency market conditions tightened as geopolitical instability persists, resulting in geoeconomic concerns ahead of the U.S. Federal Reserve decision on rates.
Dogecoin fell 1.04% over the last 24h, a modest decline that extends a 10.49% weekly loss, reflecting broader market weakness. Its trading volume has declined by 44% to $426 millionon the day.
The broader crypto market declined over the weekend, with Bitcoin falling to $88,700 and Ethereum to $2,930, as renewed trade war fears emerged – and alcoins have been casualties of profit-taking and capital rotations in the crypto space.
The market temperature was affected by President Donald Trump’s threat of a 100% tariff on Canadian goods, and traders are awaiting the Federal Reserve’s interest rate decision on January 28.
This created a risk-off environment where speculative assets like Dogecoin underperformed. Cryptocurrency analysts explained that macro uncertainty reduces investor appetite for high-risk assets while the markets record a significant move into safe havens.
Dogecoin, as a meme coin with high beta, is particularly sensitive to shifts in global risk sentiment. The market-wide dip indicates the sell-off was not DOGE-specific but part of a broader capital rotation out of crypto.
The market now anticipates that the Fed’s statement, if hawkish, could prolong pressure, while a dovish signal might support a relief rally.
Dogecoin trades at $0.123, well below its 30-day average of $0.134. The Relative Strength Index-14 at 38.61 shows bearish momentum but is not yet oversold, while the MACD histogram is negative at -0.0018943, confirming downward pressure.
The price is trapped in a lower-highs, lower-lows structure. With no bullish reversal signals, technical traders see further downside risk, targeting the recent swing low near $0.116. The lack of buying interest at these levels suggests the path of least resistance remains down.
Derivatives data shows significant bearish sentiment persists for altcoins, with funding rates remaining negative or neutral. Dogecoin’s open interest is steady at $1.41 billion, but spot volume has dropped 45.61% in 24h, indicating thinning liquidity and weak conviction.
Dogecoin’s minor 24h drop is part of a broader corrective phase driven by macro fears, technical breakdowns, and weak altcoin sentiment. First Holdco Gains 12.8% as Investors Tag Along with Otedola
