On February 3, 2025, Dogecoin (DOGE) experienced a dramatic decline, plummeting from approximately $0.34 to as low as $0.20, resulting in a nearly 40% loss of value. At press time, DOGE found tentative stability near $0.25.
The plunge followed the announcement of new tariffs by the Trump administration on major trading partners including China, Mexico, and Canada, which triggered a broad sell-off in risk assets, particularly affecting cryptocurrencies. This news led to a significant liquidation in the crypto market, erasing over $2.2 billion in value.
Despite the turmoil, crypto analyst Coosh Alemzadeh maintains a bullish long-term outlook for DOGE, highlighting its position above the 30-week moving average, currently around $0.20-$0.22. Alemzadeh's weekly chart indicates DOGE's price breached a descending trendline in October, suggesting potential for recovery if it stabilizes above this threshold.
The chart also reveals critical Fibonacci levels, with the 0.618 retracement at $0.2667 serving as a significant support zone. Should DOGE reclaim its bullish momentum, targets of $1.27 and $2.30 are projected for future price action.