Dogecoin Falls Below $0.1310 After Fed Rate Cut, Bears Take Control

Dogecoin Drops 5% After Federal Reserve Lowers Interest Rates, Breaking Key Support and Spiking Trading Volume

  • 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.

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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.

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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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