Key Takeaways
- Bitcoin sell-off sees Dogecoin drop by over 10% in the past 24 hours following the crypto market crash.
- Dogecoin faces a tough decision as bulls must protect its price from dropping below a key zone of $0.31
- Despite the price drop back to its support zone, Dogecoin remains on track ahead of its $1 mark if $0.3 support holds.
Dogecoin (DOGE), the famous memecoin faced a harsh drop in price with over 10% loss in the last 24 hours following the cryptocurrency market crash as the price of Bitcoin fell from its high of $100,000 to a region of $95,000, failing to hold its key support of $97,000.
Another key reason the cryptocurrency market is falling, as Dogecoin is affected, is the macroeconomic condition of the US. The United States Federal Reserve has hinted at a possible rate cut in 2025, leading to a global market crash, including the stock market.
How will Dogecoin and the rest of the cryptocurrency market deal with such a sell-off, and will the Dogecoin price recover ahead of its scheduled rally to $1?
US Economic Data Triggers Crypto Market Sell-off
The cryptocurrency market and Dogecoin sell-off today align with the financial market, which has experienced a price decline in the past 24 hours. The market lost its winning streak to strong economic news from the US that suggests the US Federal Reserve will further cut its rate before the second quarter of 2025, sparking long liquidations across the stock and crypto markets.
This price decline was further heightened by high interest rates across the exchange, which required long liquidations to cool things off, as the market has experienced an extended uptrend in the past few weeks.
This long liquidation cascade resulted in a market reset, and the crypto market’s fear of greed index became neutral following a significant price decline in the last couple of hours. While the current market drop could be good for many, whales would be looking to buy Dogecoin here.
Dogecoin Technical Analysis – Is Dogecoin Expected To Rise Again?
Source – Dogecoin Price Chart From TradingView
The cryptocurrency market could see more downtrends as the price of Bitcoin looks weak, headed to a key support zone of $92,000, which could affect memecoins as the price drops.
The price of Dogecoin looks to be headed in a downtrend, as bears could push it towards its support zone of $0.31. DOGE currently trades around $0.34, dropping from its high of $0.39 after a strong rally in previous weeks.
With the price of Dogecoin trading below its 50-day and 200-day EMAs (Exponential Moving Averages), we could see Dogecoin drop to around $0.31, which would act as a strong support area for Dogecoin in the higher timeframe.
The price of Dogecoin needs to hold above $0.31 to prevent bears from much sell-off, as this could create panic for DOGE holders if the price fails its support zone of $0.31.
Key Support For DOGE – $0.31
