- Dogecoin dropped 5% following the Federal Reserve lowering interest rates by 25 basis points.
- DOGE broke below a key support level at $0.1310, signaling a short-term bearish trend.
- Trading volume spiked to 769.4 million tokens on the decline, confirming active selling.
- The $0.1310–$0.1315 zone now serves as resistance, with $0.1290 and $0.1266 as immediate support levels.
- Continued volume trends will determine whether selling pressure weakens or persists.
Following the Federal Reserve’s decision to cut interest rates by 25 basis points to a 3.5%–3.75% target range, Dogecoin experienced a 5% decline during the Tuesday trading session. The central bank’s cautious guidance revealed internal disagreements on future easing, which reduced risk appetite across cryptocurrency markets.
Meme coins like DOGE faced heavier pressure compared to broader crypto assets. Traders scaled back their holdings after a period of consolidation near resistance levels, driven mainly by broader market sentiment rather than token-specific news.
Technically, DOGE fell sharply below the $0.1310 support zone, which had been a base during recent sideways trading. This break triggered accelerated selling instead of a brief test of liquidity. The decline occurred on a surge in volume to 769.4 million tokens, far exceeding average daily activity, indicating active distribution.
Price action showed DOGE reaching a session low near $0.1266 before buyers caused a slight rebound to about $0.1291 by the session close. However, this recovery took place on weakening volume and left DOGE below key moving averages. Overnight trading saw further pressure, with the price falling from $0.1320 to $0.1314 on steady selling activity.
The $0.1310–$0.1315 range now marks immediate resistance. If DOGE remains below this level, any upward moves are likely to be corrective rather than confirming a bullish trend. On the downside, a break below $0.1290 could reopen the path to the $0.1266 support level. Holding above $0.1290 may allow consolidation before the next directional movement.
Monitoring volume remains crucial. Continued high volume during declines would signal ongoing distribution, while decreasing volume near support might indicate that selling pressure is fading.
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