Dogecoin Sinks Nearly 8% as Profit-Taking and Political Uncertainty Hit the Crypto Market

Dogecoin’s wild ride continues, with the meme coin sliding sharply on Wednesday. While the token’s recent gains have been impressive, investors are now taking some chips off the table amid new legislative uncertainty and market cooldown.

The broader crypto rally is showing signs of fatigue, and DOGE, despite being up over 50% in three months, is now feeling the heat.

Dogecoin Drops Over 10% in 24 Hours Before Slight Recovery

Wednesday’s trading session brought another wave of red to Dogecoin holders.

At one point, the coin was down 10.6% over the previous 24 hours, with its price briefly dipping to $0.23. It managed to recover slightly by early evening, closing the day with a 7.93% loss and settling around $0.24.

That’s a hefty drop, especially when compared to the relatively tame moves of Bitcoin and Ethereum during the same period—down 1% and 2.9%, respectively.

So what’s going on here?

Crypto Legislation Hits Pause Button, and So Does Dogecoin

Momentum had been building for crypto over the past few months, with legislative wins fueling optimism. But now that push is hitting a speed bump.

The Genius Act was signed into law last week, laying out guidelines for stablecoins. And the Clarity Act—a bill that would ease SEC oversight on many cryptocurrencies—passed the House. But now it’s just…sitting. Congress has gone into early recess.

That delay isn’t sitting well with investors who were hoping for faster clarity and stronger regulatory momentum. As one trader put it on X, “We’re running on fumes now. The legislation tailwind just went quiet.”

And Dogecoin, which lacks the kind of developer activity and technical progress seen in Bitcoin or Ethereum, tends to swing harder when sentiment shifts.

A Classic Crypto Cooldown After a Heated Run

Let’s not forget: Dogecoin has been on fire lately.

In the past seven days alone, DOGE is still up about 26.5%. Zoom out a bit more and the numbers get even wilder: a 51% jump in the last three months.

But after rallies like that, some profit-taking is inevitable. Especially when the near-term newsflow starts to get murky.

Investors are now weighing their gains and wondering if another leg up is coming—or if it’s time to cash out before the music stops.

Here’s what they’re likely thinking:

• The Senate’s delay on crypto bills adds a layer of uncertainty.

• Inflation data and the Fed’s next interest rate decision loom large.

• The market’s already priced in a lot of good news.

Interest Rate Decision May Steer the Next Big Move

The Federal Reserve’s next meeting could end up being the biggest short-term catalyst for Dogecoin.

If rates are cut—or even if there’s just language signaling that a cut is coming—it could breathe new life into speculative assets like crypto. If not? Buckle up.

DOGE isn’t exactly known for its fundamentals. It’s a sentiment coin. If people are feeling bold, it flies. If they’re anxious? It tanks.

That’s why all eyes are now turning to the Fed’s upcoming policy meeting at the end of this month.

Dogecoin By the Numbers: Still Volatile, Still Popular

Let’s get a quick snapshot of where Dogecoin stands right now. Numbers don’t lie, and they tell a story of both massive growth and growing risk.

It’s also worth noting that despite the dip, Dogecoin is still among the top 10 most traded cryptocurrencies by volume today. That kind of liquidity is rare for a meme token.

What Could Spark the Next Rally for DOGE?

So what would it take for Dogecoin to start climbing again?

It’s probably not going to be tech upgrades—DOGE isn’t exactly reinventing itself these days. But sentiment and politics still matter.

Watch for these three things:

1. Legislative progress in the Senate – Especially the Clarity Act and other crypto-friendly bills.

2. A dovish tone from the Fed – Rate cuts or soft guidance could be rocket fuel for meme coins.

3. A Bitcoin rally – Like it or not, BTC still pulls the entire market with it. If it runs, DOGE usually follows.

There’s also Elon Musk, the unpredictable wildcard. One tweet, one announcement involving Dogecoin payments for Tesla or X, and this thing could be moving fast again.