- Dogecoin dropped over 10% on Monday, erasing $3.73 billion from its market cap, now standing at $19.78 billion.
- CNBC host Jim Cramer warns that global markets could see a severe downturn if US President Donald Trump remains obstinate.
- The MACD indicator continues to signal a sell-off, increasing the likelihood of a prolonged decline for DOGE.
- A falling wedge pattern suggests a potential rebound could occur once global markets stabilize from Trump’s tariffs.
Dogecoin (DOGE), like many other cryptocurrencies, is experiencing a significant drop this Monday. The popular meme coin plummeted, losing 19.7% of its value within the last 24 hours to trade at $0.1354 as of this writing. Furthermore, DOGE has decreased by 19.4% over the past week, while its market cap fell from $24.67 billion to $19.78 billion since Sunday.
Dogecoin struggles as Jim Cramer predicts a ‘Black Monday’ sell-off
Dogecoin is not immune to the significant challenges affecting global markets, particularly as US President Donald Trump persists in maintaining high tariffs as a means to address the trade deficit.
On Sunday, Jim Cramer expressed concerns that global markets could undergo a ‘Black Monday’ sell-off, reminiscent of the 1987 crash, unless Trump reassesses his tariff strategies that impact 100 nations.
“If the president doesn’t attempt to engage positively with countries and businesses that adhere to the rules, then the scenario from 1987—where we saw declines for three consecutive days followed by a 22% drop on Monday—becomes increasingly relevant,” Cramer stated on Saturday.
How low can it go? Is another Black Monday on the horizon? Join the CNBC Investing Club and check out my latest insights for more details.
— Jim Cramer (@jimcramer) April 6, 2025
On April 2, President Trump declared a 10% reciprocal tariff, set to take effect on Wednesday. In response, countries like China have already initiated retaliatory tariffs, further destabilizing global markets.
“We won’t have to wait long for clarity. We will know by Monday,” Cramer mentioned.
Bitcoin continues to face downward pressure, testing support levels around $75,000 during the European trading session on Monday. Ethereum, a leading token for smart contracts, has fallen 18% over the past 24 hours to $1,469, while XRP is testing its $1.70 support. In total, the cryptocurrency market capitalization has decreased by 12.5%, settling at $2.46 trillion.
Is a bullish recovery possible for Dogecoin?
Dogecoin’s technical outlook appears bleak after losing the crucial support level of $0.15. A death cross pattern, where the 50-day Exponential Moving Average (EMA) falls below the 200-day EMA, intensifies the bearish sentiment.
The Relative Strength Index (RSI) suggests traders should consider selling XRP as it approaches oversold conditions on the daily chart, indicating strong bearish momentum. Concurrently, a sell signal from the Moving Average Convergence Divergence (MACD) corroborates the deteriorating technical situation. Should Dogecoin not reclaim the $0.15 level in the near term, there is a significant risk it could drop to $0.10.
DOGE/USDT daily chart
Nevertheless, a falling wedge pattern is emerging on the daily chart, indicating that Dogecoin might soon find a support level, potentially facilitating a bullish recovery. An oversold RSI would also be another key indicator to monitor, as it could signal an upcoming rebound. Traders considering buying the dip may want to look for a rebound starting from the $0.12 support zone.