Broader crypto decline triggered by FOMC's rate cut announcement
Dogecoin price has faced a sharp decline, decreasing over 25% in the past two days amid ongoing crypto market corrections. The broader cryptocurrency market entered a bearish state following yesterday's FOMC meeting, with BTC falling below $100K. DOGE's drop has brought it close to critical support levels, sparking speculation about whether it could dip below $0.2 soon.
Crypto Expert tweeted on X post highlighting Dogecoin's recent price trends, noting a potential key support level at $0.22076. The analysis suggests the Dogecoin price is undergoing a corrective phase after a significant 25% dip, raising concerns about a possible fall below $0.20 support levels.
According to the crypto analyst, a rebound from $0.22076 could propel the meme coin toward ambitious targets at $0.40894 and $0.65557, marking a potential 165% rally. Market observers now watch closely as DOGE approaches this critical support level, awaiting signs of recovery or further decline.
After the Federal Open Market Committee (FOMC) meeting, the Dogecoin price dropped alongside a widespread cryptocurrency market downturn. The Federal Reserve reduced interest rates by 25 basis points, as anticipated. However, Chair Jerome Powell stated there may be no further cuts in 2025.
He also clarified that the central bank cannot purchase Bitcoin, despite prior political promises. Bitcoin's decline to $100,000 triggered bearish sentiment, impacting memecoins, including Dogecoin, which saw sharp losses. Most top altcoins also experienced heavy selling pressure, evident from red candlesticks across price charts.
The latest DOGE price hovered at $0.3066 on Dec. 20, marking a sharp 15% drop. Dogecoin underperformed the broader crypto market, which fell by 6%. This decline pushed DOGE below its critical $0.35 support. Over the past week, the Dogecoin price has seen a decrease of more than 25%, highlighting mounting challenges for the meme-based cryptocurrency amid increasing market pressure.
On the 4-hour chart, the Relative Strength Index (RSI) is at 19, inidcating an oversold. If bearish momentum continues, the Dogecoin Price prediction may slide further to test the $0.20 level. Despite these signs, a potential reversal could emerge if bulls defend key support zones effectively.
Dogecoin price faces critical support levels as bearish momentum looms. While recovery is possible, traders remain cautious, watching for signs of reversal or a deeper decline below $0.20.