Dogecoin (DOGE-USD) investors were left reeling after a brutal 40% crash this week, triggered by a $2.2 billion liquidation event linked to new U.S.-China tariffs. The price fell to $0.20 before recovering 26%. But even with this slight bounce, concerns remain about what lies ahead for the world’s largest meme coin.
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Markus Delivers Blunt Reality Check
Billy Markus, Dogecoin’s co-creator, responded to investor concerns with no sugarcoating. When asked to explain the crash, Markus stated plainly that “market dynamics are not magic.” He reminded followers on X (formerly Twitter) that he has no control over the coin’s price, reiterating his long-standing detachment from the project. Despite this, Markus remains a figure investors turn to when Dogecoin hits turbulence.
Analysts Predict Potential Comeback
While panic swept through smaller investors, analysts hinted that Dogecoin may be entering a familiar cycle. Crypto chartist Trader Tardigrade pointed to a “final capitulation” phase—a pattern that in past years has led to major rallies. Another analyst, Kevin, linked Dogecoin’s movements to Bitcoin’s price, saying, “If all goes well with BTC, then DOGE should begin its next leg soon.”
The Commodity Channel Index indicates Dogecoin may be oversold, according to Trading View, which some traders see as a buying opportunity.
Elon Musk’s Shadow Looms Over Markets
Adding to the drama, Musk’s name resurfaced amid reports of his team’s access to sensitive U.S. Treasury systems. Critics, including U.S. Senator Ron Wyden, expressed concerns over Musk’s growing influence on financial markets, which has long been intertwined with Dogecoin’s volatility.
At the time of writing, Dogecoin is sitting at $0.2724.
