Dogecoin price has dropped below the critical support level of $0.20, extending its recent downtrend as bearish pressure across the crypto market intensifies. The decline comes despite US regulators declaring that meme coins are collectibles and not subject to securities laws. However, despite the regulatory clarity, the crypto market is facing one of its worst selloffs in history. Can DOGE price recover or is there a risk of further downside to $0.10? DOGE trades at $0.185 at press time, with a staggering 10% drop in 24 hours. Dogecoin Price Hits 4-Month Low as SEC Deems Meme Coins Non-Securities Dogecoin price trades at its lowest level in nearly four months after the price dropped by 26% in just seven days. The downtrend continues to extend despite the US Securities and Exchange Commission (SEC) declaring that meme coins are not securities . According to the SEC, meme coin trading does involve the offer and sale of securities as outlined in the federal securities laws. However, meme coin purchasers are not protected under securities laws. This statement has increased the odds of a Dogecoin ETF approval. According to Polymarket, the odds of a DOGE ETF being approved by the end of July 31 have soared to record highs. An approval could spark DOGE price rally to $1. Dogecoin ETF Approval Nonetheless, these factors are not enough for a bullish Dogecoin price prediction . Instead, DOGE holders continue to suffer losses. DOGE Holders Face Massive Losses as MVRV Dips The decline in Dogecoin price has placed many DOGE holders in losses, as shown by the 30-day Market value to Realized Value (MVRV) ratio. This ratio is deeply negative, suggesting that Dogecoin traders are facing unrealized losses of 20%. A significant dip in the MVRV ratio often hints at a buying opportunity that may precede a Dogecoin price rebound. However, if these losses continue, it may dampen the market sentiment for the meme coin in the near term, leading to further losses. Dogecoin 30-Day MVRV Ratio Unless more traders buy the dip and show confidence in a recovery, and buyers overpower panic sellers, DOGE price still faces headwinds. Can Dogecoin Price Drop to $0.10? Dogecoin price is facing the risk of further downside that could push the meme coin to $0.10. On the daily chart, the RSI has dropped to record lows of 23, indicating a brutal sell-off that is causing the bearish trend. The last time that the DOGE RSI was this oversold was in March 2023 when Silicon Valley Bank and Signature Banks collapsed causing panic in the crypto market. Despite this oversold RSI, the crypto market is still in a state of fear, diminishing the likelihood of a DOGE price recovery. As selling pressure grows, Dogecoin price will likely drop to $0.12 in the near term. If it loses this support level, Dogecoin could plunge to $0.0085. DOGE/USDT: 1-day Chart Is a Recovery Ahead? Dogecoin price remains under bearish stress, which weakens any chances of a recovery in the near term. The widespread market crash has intensified panic selling, which will accelerate the price decline for altcoins like DOGE. Therefore, a recovery for DOGE price is not likely to happen in the near term unless the sentiment in the broader market shifts to positive and buying pressure replaces selling activity. The post Dogecoin Price Crashes Below $0.20 as SEC Declares Meme Coins Non-Securities appeared first on CoinGape .
