Dogecoin Price Forecast: DOGE Could Drop 10% Intra-Day Drop Amid Market-Wide Correction

Highlights:

• Dogecoin is trading at the $0.310 intra-day support level
• A correction through this support level could see Dogecoin drop to $0.20
• Broader market correction driving Dogecoin’s prices lower

Dogecoin (DOGE) is experiencing a sharp correction today, down by 10% intra-day, as the broader cryptocurrency market faces a selloff. At the time of going to press, Dogecoin was trading at $0.313, down by 10.69% in the day. Analysts attribute this downturn to growing investor concerns surrounding the launch of DeepSeek AI. DeepSeek is a Chinese AI that rivals ChatGPT in performance and efficiency.

DeepSeek Rattles Markets Including Dogecoin

The cryptocurrency market, often sensitive to macroeconomic and technological developments, appears to be reacting to DeepSeek’s rapid rise. According to a post on X by a prominent analyst, DeepSeek’s emergence has sparked fears about the valuation of U.S. tech stocks.

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That’s because tech stocks have been a major driver of market growth over the past two years. The analyst highlighted that DeepSeek was developed for less than $10 million. That’s a fraction of the billions that Open AI spent on ChatGPT. This cost efficiency has raised questions about whether U.S. tech valuations, particularly in the AI sector, are over-inflated.

DeepSeek Rises to the Top on Apple App Store Downloads

Adding to the concerns, DeepSeek recently became the #1 free app on the Apple App Store. This signals its rapid adoption and potential to disrupt the AI landscape. As investors reassess the sustainability of AI-driven market gains, the selloff has spilt over into the cryptocurrency market. As a meme coin, Dogecoin is among the assets that are feeling pressured.

A Ray of Light for Dogecoin Price

Despite the current downturn, Dogecoin’s long-term prospects remain promising. One key factor that could fuel a rebound is its potential integration into Elon Musk’s upcoming X superApp. If Dogecoin becomes the primary currency for the app, it could gain mainstream adoption as a viable everyday payment method, significantly boosting its utility and value.

XPayments are coming soon for Dogecoin $DOGE pic.twitter.com/QjlvKyzSf9

— Crypto Daily Trade Signals (@cryptodailyTS) January 26, 2025

Market Pressure Could Push Dogecoin to $0.20

In the short term, however, Dogecoin could see further declines, with analysts predicting a possible drop to $0.20. That said, Dogecoin’s strong fundamentals and upcoming developments suggest it may recover faster than many other altcoins once the current selloff subsides.

Overall, as Dogecoin rides the ongoing volatility, all eyes will remain on DeepSeek’s impact on AI valuations. If the market believes that AI needs to fall back to its true value, then the selloff in the stock markets could continue. Due to the interlinked nature of the financial markets, cryptocurrencies like Dogecoin could face further declines in the short term.

Technical Analysis – Dogecoin Price Trading at Make-Or-Break Support Level

Dogecoin broke the intra-day market structure from the charts after losing the $0.337 support. At the time of writing, Dogecoin had lost the $0.310 support, an indicator that bears were gaining momentum.

If the selloff continues, Dogecoin could drop to $0.20 in the short term. On the other hand, if Dogecoin bulls manage to pull the price back above $0.310, then a consolidation between the $0.310 support and $0.337 resistance could follow in the day.

Of the two scenarios, Dogecoin is likely to head lower and test $0.20 in the day. This scenario is supported by the fact that Bitcoin appears to be turning strongly bullish. Analysts predict that Bitcoin could drop to prices as low as $70k in the short term.

Since Dogecoin usually follows Bitcoin’s price action, such a bearish signal for Bitcoin means Dogecoin could be headed lower as well. The good news about Dogecoin being integrated with X may not have much short-term weight if the broader market is bearish.