Dogecoin (CRYPTO: DOGE), the original meme cryptocurrency, dropped by 7.69% over the past 24 hours and posted a significant price pullback. The crypto is now trading at $0.23 at the time of writing.

This downturn aligns with a broader market decline, where major cryptocurrencies like Bitcoin and Ethereum also saw price reductions.

Here's a breakdown of what happened and what’s next.

What happened: Dogecoin’s price movement falls in line with a broader cryptocurrency market pullback on Thursday, likely macroeconomic.

The market sentiment has been affected by various factors, including recent U.S.-China trade tensions and regulatory uncertainties.

These developments have led to increased volatility and risk aversion among investors, contributing to the sell-off in cryptocurrencies.

Also, from a technical standpoint, Dogecoin has broken below its 50-day moving average, a key support level that often indicates bullish momentum.

The Relative Strength Index (RSI) has also dipped below 50, suggesting that the asset is entering bearish territory.

Now, analysts are watching the next critical support level at $0.20.

If Dogecoin fails to hold this level, it could potentially decline further to $0.18 or even $0.15. Conversely, a rebound above $0.25 could signal a return to bullish sentiment.

What is known: Investor sentiment towards Dogecoin has been mixed.

While some long-term holders are optimistic about the coin’s potential, others are concerned about its recent performance and the lack of significant developments in its ecosystem.

The meme coin’s popularity has often been driven by social media hype and endorsements from high-profile individuals.

However, the recent decline suggests that such factors may no longer be sufficient to sustain its price levels.

What’s next: Looking ahead, Dogecoin’s performance will likely depend on broader market trends and its ability to regain investor confidence.

Potential catalysts for a price recovery include positive developments in the cryptocurrency market, increased adoption of Dogecoin for payments, and renewed interest from influential figures.

However, if the current bearish trend continues and Dogecoin fails to establish new use cases or technological advancements, it may struggle to maintain its position in the market.

See More: Top 5 Cryptocurrencies To Watch Out For In May 2025

This article is for informational purposes only and does not provide investment advice. It should not be considered as financial advice. Always conduct your own due diligence before making any investment decisions.