Dogecoin Falls 18% — SCOTUS Tariff Ruling and CLARITY Act Could Trigger Rebound

Published: 2026-01-20 00:27:07 |

Dogecoin (DOGE) plunged about 18% on January 19, 2026, to roughly $0.1298 amid a broader crypto market sell‑off that erased early‑2026 gains. Bitcoin slipped below $95,000 and total crypto market cap fell over 2.5% as leveraged long liquidations—the highest bullish leverage since November—forced rapid deleveraging and amplified the decline. Market stress was also linked to rising trade tensions between the US and some NATO allies. Two near‑term catalysts could reverse losses: a pending U.S. Supreme Court ruling on Trump‑era tariffs (market odds favor the ruling against the tariffs, which could lead to refunds and ease trade‑related market pressure) and possible movement on the Senate Banking Committee’s CLARITY Act, which would be a direct legislative positive for crypto. Technically, DOGE printed a daily hammer candlestick suggesting a potential short‑term bullish reversal. Key levels to watch: immediate recovery target at $0.1560 (~22% upside from current), higher resistance at $0.1953 (~55% upside), bearish invalidation below the December low at $0.1160, and psychological support at $0.10. Traders should monitor SCOTUS developments on tariffs, CLARITY Act progress, BTC support levels, and liquidation metrics for signals of renewed volatility and directional bias. Risk management is crucial given elevated leverage and the potential for rapid forced selling.

Bearish

The combined news points to a short‑term bearish impact on DOGE. The sharp ~18% drop driven by forced liquidations and elevated bullish leverage increases downside pressure and the risk of further volatility. While two potential catalysts (a SCOTUS ruling against tariffs and progress on the CLARITY Act) could spur a rebound, they are event‑dependent and not guaranteed; the tariff ruling timing and legislative outcomes are uncertain. Technicals offer a possible short‑term bounce (daily hammer, recovery targets at $0.1560 and $0.1953), but the bearish case remains valid unless DOGE reclaims resistance levels—invalidation of the bear case sits above $0.1160. For traders, the immediate outlook is risk‑off: tight stops, reduced position sizing, and monitoring of liquidation metrics, BTC support, and legal/legislative headlines are advised. Overall, expect continued short‑term downside risk with event‑driven upside potential if catalysts materialize.