will it go back up?

Dogecoin price has fallen for two consecutive days as sentiment in the crypto industry worsens.

Dogecoin (DOGE), the biggest meme coin in the cryptocurrency market, fell 6% on January 8 to hit an almost one-week low of $0.3415.

This drop occurred in a high-volume environment, with $5.26 billion worth of tokens changing hands, up from $3.3 billion on Tuesday. The increase in trading volume indicates that some investors have started to liquidate their positions.

Dogecoin’s decline triggered a significant increase in liquidations. $20 million worth of bullish positions were liquidated on Tuesday, followed by nearly $15 million on Wednesday. These liquidations were the largest since December 19. When large liquidations occur, this often results in a sharp price drop as leveraged bullish trades are automatically closed by exchanges.

Further data shows that Dogecoin’s weighted funding rate remains positive and demand for long positions is decreasing. This also reflects increased caution as cryptocurrency prices retreat amid rising US bond yields.

The chances of the Securities and Exchange Commission accepting the DOGE ETF this year remain slim. Those rates fell from 13% to 36% on Wednesday, according to Polymarket.

Still, some analysts expect Dogecoin price to recover. As we’ve written before, Bitcoin, which often drives broader crypto market trends, remains in a strong bull market and has formed a bullish pennant pattern that typically signals more gains ahead.

In a post on X, KrissPax noted that DOGE’s current price movement mirrors previous patterns seen in 2023 and 2024. KrissPax noted that the cryptocurrency rebounded in November 2023, followed by a decline, a consolidation phase, and then a recovery in 2024.

Dogecoin price action is very similar to a year ago. In November 2023, $DOGE It traded first, then fell and consolidated before the big rally in 2024. In November 2024, Doge traded higher, then fell and is currently consolidating. Next up is a big rise in 2025. pic.twitter.com/QvMPxh7Bbw

— KrissPax (@krisspax) January 8, 2025

Dogecoin price analysis DOGE price chart | Source: crypto.news

The price of Dogecoin has declined over the past few weeks, falling from a December high of $0.4830 to $0.34. Despite the decline, it remains above the 38.2% Fibonacci retracement level and the 50-day and 100-day moving averages.

The Percentage Price Oscillator indicator is bullish and its histogram remains above the zero line.

Given these factors, DOGE is likely to remain in this range before rising to last year’s high of $0.4830 this quarter. Such a move would represent a 43.50% increase from the current level. However, in a bearish alternative scenario, the coin could be expected to fall to the December 20 low of $0.2630.