Dogecoin, along with other memecoins, has experienced a significant decline in value in the past week due to the broader selloff in the cryptocurrency market.

This volatility is attributed to the nature of memecoins, which tend to experience sharper selloffs compared to more established cryptocurrencies.

The lack of "value buyers" in the memecoin sector exacerbates these downturns.

The recent pullback in the cryptocurrency market is linked to the Federal Reserve's monetary policy decisions, creating uncertainty among investors and leading to the liquidation of risky assets, including memecoins.

Despite these setbacks, the overall cryptocurrency market has had a remarkable year, with renewed investor interest and support from figures like Elon Musk.

Market analysts remain optimistic about the future of the cryptocurrency sector, including memecoins, as the regulatory landscape evolves under the new administration.

The resilience of assets like Dogecoin will be tested as the market continues to navigate economic conditions and investor sentiment.