Dogecoin Price Decline Amid Crypto Market Sell-Off

The price of Dogecoin continued its downward trend on Tuesday as most cryptocurrencies experienced a significant sell-off. DOGE fell to a low of $0.1140, marking its lowest point since March 1st, 2024. This represents a drop of almost 50% from its peak earlier this year.

Crypto Market Sell-Off Intensifies

Dogecoin has faced increased pressure since March as many meme traders shifted their focus to newer tokens like Pepe, Dogwifhat, and Brett. During this period, traditional meme tokens such as DOGE, Shiba Inu, and Baby Doge have underperformed compared to their newer counterparts.

Additionally, Dogecoin’s decline is partly due to Bitcoin’s performance. Bitcoin, the largest cryptocurrency, has been trading within a tight range and has struggled to break above the $72,000 resistance level. Without a positive catalyst, such as the SEC approving spot ETFs or the recent halving event, Bitcoin’s growth has stalled. This stagnation often affects altcoins like Dogecoin, which tend to rally when Bitcoin performs well.

There are also ongoing concerns about the Federal Reserve’s stance on interest rates. The Fed has indicated just one rate cut, despite signaling at least four cuts in its December meeting. Riskier assets like Dogecoin generally perform better when the Fed adopts a dovish stance.

Dogecoin Price Forecast

Analyzing the daily chart, DOGE peaked at $0.2290 in March when Bitcoin surged to a record high. However, Dogecoin has since lost momentum, crashing to its lowest level since March 1st.

Dogecoin has fallen below the lower boundary of the Andrew’s Pitchfork tool and key support at $0.1208, which was its lowest point on May 1st. It has also dropped below the 200-day moving average, indicating the potential formation of a death cross, a highly risky pattern in technical analysis.

The Relative Strength Index (RSI) has continued to decline, reaching an oversold level of 30 for the first time this year. Additionally, the Awesome Oscillator has remained below the neutral level since June 8th.

Given these indicators, Dogecoin’s price is likely to continue falling as sellers target the psychological level of $0.10. A break below this level could increase the likelihood of DOGE reaching $0.0750, its lowest point in January.

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