Key takeaways

• DOGE has lost its position as the 8th-largest crypto by market cap after Tron’s TRX overtook it.
• The coin could drop to the $0.15 level as the broader sentiment remains bearish.

TRX flips Dogecoin

Tron’s TRX has been the best performer among the top 10 cryptocurrencies by market cap this week. After an excellent start to the week, TRX has now flipped Dogecoin to become the 8th-largest cryptocurrency by market cap.

At press time, Dogecoin’s market cap stands at $25.5 billion, while TRX has climbed to $26 billion. With Dogecoin trading around $0.17 per coin, it could face further selling pressure in the short term before any substantial rally.

The selling pressure comes amid the bearish conditions in the broader financial markets caused by the ongoing conflict in the Middle East. Dogecoin, Shiba Inu, and other major memecoins have been underperforming as investors are pushing funds into risk-averse assets.

Despite the current bearish conditions, analysts remain optimistic about Dogecoin’s medium to long-term potential. DOGE is still 76% down from the all-time high price of $0.7376, signalling room for growth over the coming weeks and months.

DOGE could test the $0.50 psychological level before a rally

At press time, the price of Dogecoin stands at $0.1716, up 1% in the last 24 hours. While analysts expect a rally in the medium to long term, DOGE could underperform in the short term.

The DOGE 4H chart shows that the cryptocurrency is currently bearish. The RSI of 48, down from 66 earlier this month, shows that DOGE is currently facing selling pressure. If that continues, the RSI could enter the oversold region.

The MACD has also slipped into the negative zone, indicating that the buyers have relinquished control. The negative performance could see DOGE test the support level at $0.163 before breaking down to the $0.15 psychological level.

However, if the bulls regain control of the market, DOGE could test the external liquidity level around $0.20 in the coming days or weeks.

After rocketing up to the highs of $108,000 in December 2024, Bitcoin now has fallen to about $96,000. This has led to renewed debate among analysts as to what this means for the leading cryptocurrency. Some think that it may all be a warning, but others, such as Fundstrat’s Tom Lee, are still bullish long-term.

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$50,000 The Worst-Case Scenario?

Recently, Tom Lee shared his opinions with CNBC during an interview as a response to the fears regarding Bitcoin’s latest retreat. He stated that corrections up to $70,000 or even down to $50,000 can happen. Corrections of this type, he continued, have become extremely frequent throughout Bitcoin’s history; hence long-term investors must consider them opportunities and not as problems.

It was with the mention of $50,000 that eyebrows were raised, but Lee’s confidence in Bitcoin’s strength remains unbroken. He said these corrections often prepares the stage for even stronger price recoveries, especially in a market as dynamic as crypto.

A Bold Prediction Amid Uncertainty

Lee predicted that the price of Bitcoin might reach $200,000-$250,000 by the end of 2025, simply because he is convinced that this cryptocurrency will eventually serve as an economic hedge against instability and increase in adoption rates among institutional investors.

Lee also says the current price point of $90,000 will be an ideal entry point for anyone thinking long term. His reasoning is that Bitcoin’s underlying fundamentals remain strong, and the recent pullback hasn’t dented its broader growth narrative.

Inflation And Market Dynamics

Lee said that inflation fears are not yet critical, and temporary disruptions, such as natural disasters, can impact data. However, the cautious approach of the Federal Reserve to rate cuts gives room for optimism. A slower pace of inflation and strong earnings from major companies could boost risk assets, including Bitcoin, in the near term.

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Investor Sentiment And What’s Next

After Lee’s comment, Bitcoin rebounded a little; it came back to about $96,400. The rebound shows that the market participants were comforted by his analysis.

The lesson for investors is obvious: volatility will probably interrupt Bitcoin’s road of development, but overall the long-term future seems bright. Forecasts for the market range from $50,000 to $250,000, thereby presenting both risk and possibility.

The balancing act between fear and optimism will ultimately shape Bitcoin’s trajectory in the months to come.

Featured image from Shutterstock, chart from TradingView