Dogecoin is facing a significant decline, having dropped over 13 percent in just the past week. This downturn is accompanied by a spike in liquidations, signaling a decrease in investor confidence. Interestingly, the recent interest rate cut from the Federal Reserve did little to invigorate the crypto market. Within just 24 hours following the announcement, the total market cap saw a reduction of about $120 billion. Digital assets, like Dogecoin, typically rely on movements in the US dollar, so one might have expected a boost from lower interest rates. However, at the time of this writing, Dogecoin has slipped an additional 0.1 percent, trading at $0.357.
The momentum for Bitcoin, which often sets the tone for the entire cryptocurrency market, has dwindled. It declined from nearing the $110,000 mark to hovering in lower territory, causing widespread liquidations and reflecting a growing lack of faith among investors. According to Coinglass, Dogecoin is now the third-most-liquidated crypto after Bitcoin and Ethereum, with around $416.65K in long liquidations. This pattern suggests that investors are hesitant to hold onto Dogecoin during this downturn, which could bring even more downward pressure on its price.
Meanwhile, as reported by CoinMarketCap, Dogecoin’s trading volume has surged by 52 percent in the last 24 hours. Typically, an increase in trading volume during a market dip reflects a firm downward momentum. With a 13 percent decrease in the past week and a 3.3 percent loss over the last month, the asset is struggling for support, hinting at the possible continuation of this trend.
Looking ahead at the price forecast for Dogecoin, it currently pivots around $0.364, but all signs suggest further downside may be on the horizon. The Money Flow Index (MFI) indicates that sellers hold the reins, with initial support likely at $0.352. If the downward trend intensifies, it could plunge even lower, down to $0.340.
Conversely, if Dogecoin manages to rise above $0.364, it could see a shift in momentum. In this case, the first resistance level would be around $0.380, and if buyers can gain substantial ground, it could even push past this barrier, possibly reaching $0.390.
For those keeping an eye on the situation, it’s clear that the market is experiencing turbulence, and investors should remain cautious as they navigate the fresh complexities of Dogecoin’s price movements.
