Dogecoin (DOGE), the popular meme-inspired cryptocurrency, has faced sharp selling pressure over the past 24 hours, with its price dropping 9.6%. The sudden decline has sparked concern among investors and traders who are now closely monitoring whether the Federal Reserve’s upcoming policy decision could influence a potential rebound.
A Steep Decline for DOGE
Over the past day, Dogecoin has struggled to maintain momentum, falling from $0.29 to near $0.26. This move reflects a broader wave of caution across the crypto market as traders reduce exposure ahead of key macroeconomic events. The sell-off is notable given Dogecoin’s strong performance in recent weeks, where optimism around ETF speculation and growing retail interest had fueled upward momentum.
The Fed Factor
The Federal Reserve’s meeting looms as the next big catalyst. Markets widely expect an announcement on potential rate cuts, which could either inject fresh liquidity into risk assets or reinforce a cautious stance depending on the tone of the decision. For Dogecoin, a dovish Fed could translate into renewed demand and a price recovery. However, a hawkish approach might extend selling pressure, leaving DOGE vulnerable to deeper corrections.
Investor Sentiment
Despite the sharp drop, Dogecoin still maintains a strong base of retail support. The token’s community-driven nature often amplifies volatility in both directions, and history has shown that DOGE can stage sharp rebounds following steep declines. Analysts caution, however, that the recent downturn may have shaken short-term traders who were chasing momentum.
Social media chatter remains divided, with some investors calling the dip a buying opportunity, while others warn that without broader market support, recovery could be delayed.
Key Levels to Watch
Technical indicators suggest that immediate support lies around $0.25, a psychological level that could attract dip-buyers if the broader market stabilizes. On the upside, resistance at $0.30 will be critical for DOGE to reclaim if it is to restore bullish sentiment.
Takeaway
Dogecoin’s 9.6% decline serves as a reminder of the asset’s inherent volatility. The Fed meeting is likely to act as the short-term driver for DOGE’s next major move. Whether Dogecoin bounces back or enters a period of prolonged weakness will largely depend on the central bank’s signal and the market’s reaction to it.
For now, cautious optimism prevails, with long-term supporters holding out hope that DOGE’s resilience will once again shine through.
