Dogecoin Price Crashes Below $0.20 After 26% Drop as SEC Declares Meme Coins Non-Securities

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Dogecoin (DOGE) has plummeted below the critical $0.20 support level, continuing its recent downtrend despite the U.S. Securities and Exchange Commission (SEC) clarifying that meme coins are collectibles and not securities. However, this regulatory clarity has not prevented a massive selloff in the crypto market, raising concerns about whether DOGE could plunge further to $0.10.

Dogecoin Price Hits Four-Month Low Amid Market Crash

DOGE is currently trading at $0.185, marking a staggering 10% decline in just 24 hours and a 26% drop over the past week. This downtrend has pushed the meme coin to its lowest level in four months. The SEC’s recent statement that meme coins do not fall under securities regulations initially raised hopes of a DOGE exchange-traded fund (ETF) approval. According to Polymarket, the odds of a DOGE ETF approval by July 31 have significantly increased. If approved, a rally toward $1 could be possible. However, the current bearish trend suggests that traders remain unconvinced.

DOGE Holders Face Heavy Losses as MVRV Ratio Dips

Dogecoin investors are grappling with significant losses, as the 30-day Market Value to Realized Value (MVRV) ratio has dropped to deeply negative levels. Data indicates that many DOGE holders are facing unrealized losses of approximately 20%. Historically, such a dip in MVRV can signal a potential buying opportunity.

However, continued selling pressure may prolong the downturn, discouraging any immediate recovery.

Also Read: Dogecoin Price Forecast: How Holding 1,000 to 10,000 DOGE Could Turn Into a Game-Changer

Will DOGE Drop to $0.10?

Technical indicators show that DOGE’s Relative Strength Index (RSI) has hit a record low of 23, signaling an extreme sell-off. The last time RSI levels were this low was during the March 2023 banking crisis, which triggered panic across financial markets. Despite the oversold conditions, fear remains dominant in the crypto space, making a recovery uncertain. If DOGE loses its next support at $0.12, a further plunge to $0.0085 could be imminent.

Is There Hope for a Rebound?

Dogecoin’s recovery prospects remain bleak unless market sentiment shifts positively. Panic selling continues to dominate, overshadowing any bullish signals. Unless buyers step in to absorb the sell pressure, DOGE could struggle to regain lost ground in the near term.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.