Dogecoin fell below $0.20. Buy when prices fall or run away?

Dogecoin was created as a joke by two friends in 2013. Cryptocurrencies became very serious at the time with the rise of Bitcoin and they wanted to calm the atmosphere. The Doge meme was going viral on the internet at the time and they used it as inspiration to launch Dogecoin. It became one of the world's most valuable cryptocurrencies in 2021 when its market capitalization reached $90 billion, backed by influencers like Elon Musk, who began promoting it online. But Dogecoin didn't find a real use case, and since the speculative craze never lasted, the meme token lost 90% of its value by mid-2022. Investors spent the next two years licking their wounds, until Dogecoin produced another incredible bull run when Donald Trump won the presidential election last November. It failed to surpass its all-time high, but ended 2024 with a whopping 251% gain. The meme token is now collapsing once again, making investors feel like they used to. So is this a buying opportunity or the start of a much steeper decline? Trump and Musk: a double-edged sword for Dogecoin Tesla CEO Elon Musk has supported Dogecoin since 2019 by regularly posting memes on social media and engaging in conversation with other enthusiasts. The token actually gained traction in 2021 before he appeared on Saturday Night Live on May 8, where he participated in a Dogecoin-themed skit. In fact, Dogecoin rose to a price of $0.73 that very night, equating to a 15,769% increase for the year. Unfortunately, it also marks the pinnacle. Investors quickly realized Musk didn't have a specific plan to support his promotional activities, and as I mentioned earlier, the meme token lost 90% of its value by mid-2022. Back in 2025, Trump is fulfilling his promise to make the United States the crypto capital of the world. Under his watch, the (SEC) Securities and Exchange Commission is withdrawing or halting several active lawsuits against cryptocurrency exchanges and related businesses. Additionally, the president has established a strategic reserve of Bitcoin and digital assets, which could make the U.S. government an active buyer of cryptocurrencies one day (với approval from the hội).

But Dogecoin investors got caught up in the craze for another reason after Trump's election victory. The president created the Department of Government Efficiency, or DOGE, shortly after taking office and appointed Musk to run it. The ministry is focused on finding wasteful government expenditures to help shrink the national debt, and its name is an obvious reference to Musk's favorite cryptocurrency. But the Trump administration is a double-edged sword for Dogecoin. On April 2, Trump announced a 10% tariff on all goods imported into the United States, and he also revealed plans to impose larger reciprocal tariffs on imports from specific countries. The tariffs don't directly affect commodities or digital assets like Dogecoin, but stocks and cryptocurrencies have plunged across the board as investors flock to cash safety for fear that slowing economic growth may be imminent. As a result, Dogecoin has fallen below $0.20 and is now down 66% from its recent 52-week high of $0.47. The basics are important While tariffs have helped accelerate Dogecoin's decline, it is actually trending down due to a series of structural issues. First, consumers and businesses simply haven't adopted it as a payment mechanism yet, which means that demand comes only from speculative investors. According to the Cryptwerk cryptocurrency catalog, only 2,095 businesses worldwide accept Dogecoin as payment for goods and services. Second, Dogecoin has supply issues. There are 148.8 billion tokens in circulation, and while there is a limit on the number of new tokens that can be issued each year, there is no official end date. In other words, the new Dogecoin will be minted permanently. I can't think of an investment asset with an unlimited supply that will provide positive returns for investors in the long run, and this meme token probably won't fight that trend. Since Dogecoin's latest speculative bull run peaked at $0.47, well below its 2021 high of $0.73, it seems investors have been more cautious at this point. The meme token is currently trading at just $0.16, but history suggests there may still be some downside ahead as it bottomed out at $0.06 after its last crash in 2022.

That means that the price of Dogecoin will continue to fall another 65%, and since Dogecoin has fundamentally changed nothing in the past few years, investors cannot rule out that possibility. There is no indication that Dogecoin will play a role in the Ministry of Government Efficiency, nor is there any indication that investors want to own it as a hedge against tariffs and trade tensions, despite the fact that this meme token is not directly affected by these issues. Therefore, this looks like 2022, meaning that the recent decline is probably not a buying opportunity. Instead, investors may want to stay away.