The decline in prices of cryptocurrencies like Bitcoin, Dogecoin, Pepe, and XRP may be the result of a combination of economic, technical, and psychological factors. Here are the main reasons that may be behind this decline:
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1. Profit-taking after previous increases
After significant increases, many investors sell part of their holdings to take profits, putting downward pressure on the price.
Coins like $PEPE and $DOGE often experience speculative increases followed by sharp corrections.
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2. Tightening of oversight and laws
Regulatory bodies such as the SEC in the United States may issue negative statements or decisions against cryptocurrencies or trading platforms.
For example: Any investigations against $BTC or Coinbase affect confidence in the market in general.
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3. Decreased liquidity or investor interest
During certain periods, trading volume decreases due to liquidity moving to other markets (such as stocks or gold).
Meme coins like PEPE and DOGE are significantly affected by changes in general sentiment on the internet.
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4. Changes in the global economy
Rising interest rates from central banks (such as the U.S. Federal Reserve) make investors prefer safe assets over cryptocurrencies.
Economic or political crises may drive individuals to reduce financial risks.
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5. Negative technical performance (technical analysis)
Breaking important technical support levels leads to automatic sell waves.
Professional traders rely on technical signals that may lead to collective selling decisions.
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6. Negative news or rumors
Rumors about hacks, bans in certain countries, or bankruptcy of platforms/projects.
Example: If news spreads about the liquidation of large Bitcoin wallets, the market is quickly affected.
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7. Selling by large entities (whales)
When large amounts of cryptocurrencies are moved from cold wallets to exchanges, it is considered a signal of selling intent, causing panic in the market.
