- Dogecoin (DOGE) has dropped nearly 10% in value, trading at $0.3466 amid a broader cryptocurrency market sell-off driven by strong U.S. economic data and rising Treasury yields.
- While technical indicators suggest further downside risks, a rebound remains possible if DOGE surpasses key resistance levels.
Dogecoin (DOGE), the widely recognized memecoin, has faced a turbulent week, shedding nearly 10% of its value within a single day. This drop highlights the challenges faced by the cryptocurrency market as broader economic pressures mount.
Market Overview: A Sharp Decline
DOGE’s market capitalization shrank by 5%, settling around $51 billion and maintaining its position as the seventh-largest cryptocurrency. At the time of writing, Dogecoin trades at $0.3466, a drop from $0.3950 earlier this month. This decline is mirrored across the cryptocurrency landscape, with Bitcoin falling to $95,000 from $102,000 in just one day.
The daily price chart for DOGE reveals a bearish trend, with the price trading below the critical 50-day moving average. Meanwhile, liquidations of Dogecoin positions reached $19.84 million in the last 24 hours, underscoring heightened volatility.
Macroeconomic Pressures Impacting Crypto
Dogecoin’s recent price movement aligns with broader macroeconomic trends. Robust U.S. economic data, including a strong ISM services report and high JOLTS job openings, has dampened investor expectations for Federal Reserve rate cuts before mid-2025.
Additionally, the 10-year U.S. Treasury yield has surged to its highest point since May 2024, discouraging risk-taking and prompting a sell-off across equities and cryptocurrencies. These economic headwinds have exerted additional pressure on DOGE and other digital assets.
Technical Indicators: What’s Next for DOGE?
From a technical perspective, Dogecoin is teetering at a crucial support level on the daily chart. If this support at $0.3439 gives way, the next critical level to watch is $0.3140.
The Relative Strength Index (RSI) currently stands at 48, indicating the coin is not yet oversold but faces the potential for further downward momentum. On the weekly chart, a bearish candlestick has formed after a bounce from $0.3117.
Despite these bearish signals, Dogecoin retains the potential for a robust rebound. If the price surpasses $0.3937, it could mark the beginning of a more positive trend.
The Road Ahead
While Dogecoin’s recent performance paints a grim picture, the volatile nature of cryptocurrencies means a rebound remains a possibility. Investors should keep a close eye on key support levels and macroeconomic trends to better anticipate the next move in DOGE’s rollercoaster journey.
As always, the memecoin’s fate will depend on a combination of market sentiment, economic indicators, and broader crypto market dynamics.