Dogecoin’s price took another dip on Tuesday amid a broader decline in the cryptocurrency market. The popular token, DOGE, plummeted to a low of $0.1140, marking its lowest point since March 1st, 2024. This recent drop represents a staggering decrease of close to 50% from its peak earlier this year.
A Wave of Crypto Sell-Offs
In recent months, Dogecoin has faced increasing pressure as the attention of meme traders has shifted towards newer tokens such as Pepe, Dogwifhat, and Brett. Established meme tokens like DOGE, Shiba Inu, and Baby Doge have struggled to keep up with their more contemporary counterparts.
The decline in Dogecoin’s value can also be attributed to the performance of Bitcoin, the largest cryptocurrency globally. Despite attempts to surpass the $72,000 resistance level, Bitcoin has remained relatively stagnant, failing to gain significant momentum. Typically, altcoins like Dogecoin experience positive movements when Bitcoin performs well.
Adding to the uncertainty are concerns surrounding the Federal Reserve, which has signaled a potential single rate cut after initially hinting at up to four cuts this year. The dovish stance of the Fed tends to benefit riskier assets like Dogecoin.
Dogecoin’s Price Outlook
Analyzing the DOGE daily chart reveals a peak price of $0.2290 in March, coinciding with a surge in Bitcoin’s value to an all-time high. However, Dogecoin has since lost its momentum, dropping to its lowest level since March 1st.
The token has breached the lower boundary of the Andrew’s Pitchfork tool and slipped below the critical support level of $0.1208, last seen on May 1st. Furthermore, Dogecoin has fallen beneath the 200-day moving average, setting the stage for a potential formation of a death cross—a bearish signal in technical analysis.
The Relative Strength Index (RSI) continues its downward trajectory, reaching the oversold territory at 30 for the first time this year. Additionally, the Awesome Oscillator has remained below the neutral level since June 8th.
Consequently, it is likely that Dogecoin’s price will continue to decline as sellers target the psychological threshold of $0.10. A breach below this level could pave the way for a further drop to $0.0750, the token’s lowest point recorded in January.