Dogecoin Price Crashes 18% — Will This Week's SCOTUS Ruling Trigger Massive Rebound?

Dogecoin experienced a significant downturn on January 19, wiping out gains accumulated in early 2026. The cryptocurrency trades at $0.1298 at press time, down nearly 18% from its year-to-date peak. Despite the setback, analysts suggest a potential recovery could materialize following upcoming Supreme Court decisions and legislative developments.

The digital asset fell sharply amid broader pressure in cryptocurrency markets. Bitcoin dropped below the $95,000 support threshold, while total market capitalization declined more than 2.5%. The selloff intensified amid growing concerns about escalating trade tensions between the United States and several NATO allies, including Germany, the United Kingdom, Sweden, and Norway.

Liquidation data revealed that bullish positions reached their highest levels since November. Exchanges closed leveraged positions as losses mounted and collateral requirements triggered automatic closures. This forced selling added downward pressure to an already declining market.

SCOTUS Ruling Could Trigger Reversal

The Supreme Court is scheduled to deliver a critical ruling on Tuesday regarding tariffs implemented during the Trump administration. This decision could be a major catalyst in reversing recent losses across risk assets.

Polymarket data indicates most participants expect the court to rule against the tariffs. The potential for refunds to thousands of affected companies has fueled speculation about market recovery. Such an outcome would likely invalidate recent tariff implementations on NATO member countries, providing relief to assets that suffered during Monday's decline.

However, any positive market reaction may prove temporary. Alternative mechanisms for implementing trade restrictions include Section 301 provisions on unfair trade practices and Section 232 national security measures. Congressional authorization for additional tariffs remains another available option.

Legislative Progress on CLARITY Act Expected

The Senate Banking Committee may advance the stalled CLARITY Act this week, providing another potential boost for cryptocurrency markets. The bill's progress stalled last week, contributing to widespread declines across digital assets. Movement on this legislation could restore investor confidence and support price recovery.

Technical analysis suggests Dogecoin is forming a hammer candlestick pattern on daily charts. This formation typically signals bullish reversals, characterized by a small body and an extended lower shadow. The pattern commonly appears during downtrends before price reversals.

Analysts project the initial recovery target at $0.1560, representing approximately 22% upside from current levels. This price point aligns with the year-to-date high and sits near the Major S&R Pivot Point identified by Murrey Math Lines analysis.

A sustained break above $0.1560 could open the path toward $0.1953, classified as ultimate resistance. This level represents 55% gains from present values. Such a move would require sustained buying pressure and positive fundamental developments.

The bullish scenario is invalidated if prices fall below the December low at $0.1160. A break beneath this support would indicate additional selling pressure remains in the market. The next significant level sits at the psychological $0.100 threshold.