Dogecoin Plunges 22% After Hitting $0.28, Shocking Crypto Market

Dogecoin (DOGE) shocked traders with a sudden 22% drop, erasing most of its recent gains and halting bullish momentum. The meme token had surged past $0.28 in a strong rally, easily surpassing key moving averages, including the 50, 100, and 200 EMAs. Growing optimism and rising trading volume had fueled expectations of consolidation or mild retracement, not a steep reversal.

The unexpected sell-off pushed DOGE from near $0.29 back to the $0.24 zone, wiping out critical support levels and triggering broader market concerns. Technical indicators show the rally sent DOGE’s RSI above 70, entering overbought territory and signaling caution, yet the magnitude of the decline surprised many.

Market data confirmed the drop was genuine, supported by a sharp spike in trading volume that validated heavy selling pressure rather than market noise. This move threatens sentiment not only for Dogecoin but also for other meme coins and high-beta altcoins that often follow DOGE’s lead during speculative upswings.

Dogecoin’s reversal comes at a crucial moment for the crypto market, where retail investors were regaining confidence after weeks of choppy trading. If DOGE fails to recover quickly, it could undermine momentum-driven trades and weigh on overall market sentiment heading into the next trading sessions.

Traders are now closely watching the $0.24 support level for signs of stabilization, with any further breakdown potentially opening the door to deeper losses. Conversely, a bounce could reignite bullish interest if volume returns on the upside.