Dogecoin lost a key technical level following the Federal Reserve’s latest rate decision, with heavy volume confirming a near-term move toward bearish control.
News context
Dogecoin fell 5% during Tuesday’s session as crypto markets reacted to the Federal Reserve’s 25 basis point rate cut and cautious guidance from the Federal Reserve. While rates were cut to a target range of 3.5% to 3.75%, policymakers signaled internal disagreement over the pace of further easing, dampening risk appetite on digital assets.
Meme coins underperformed during the broader pullback, with DOGE facing outsized pressure as traders reduced exposure following a recent consolidation near resistance. This move appears to be driven more by positioning and macroeconomic sentiment than token-specific fundamentals.
Technical analysis
DOGE decisively broke through the $0.1310 consolidation zone, a level that had served as short-term support during recent range trading. Once this level was exceeded, selling accelerated quickly, confirming a breakup rather than a brief sweep of liquidity.
Trading volume surged to 769.4 million tokens during the decline, well above recent averages, validating the move as an active distribution rather than a low-liquidity drift. The price reached a lower high near $0.1324 before flipping, reinforcing the bearish structure on the intraday timeframe.
From a structural perspective, the loss of $0.1310 brings DOGE back into a corrective phase, with rallies now likely to face selling pressure unless this level is convincingly reclaimed.
Price Action Summary
DOGE traded from $0.1315 to a session low near $0.1266 before stabilizing. Buyers intervened at lower levels, producing a modest rebound towards $0.1291 at the close.
The recovery, however, occurred following a decrease in volume and price remaining below key moving averages. Overnight trading showed continued pressure, with DOGE rising from $0.1320 to $0.1314 on steady but controlled activity, suggesting sellers remain active during rallies.
What Traders Need to Know
The $0.1310 – $0.1315 area now acts as immediate resistance. As long as DOGE remains below this zone, upward movements are corrective rather than confirming the trend.
On the other hand, $0.1290 is the first level to watch. An extended break below this bottom would likely reopen the $0.1266 support area. Conversely, holding above $0.1290 could allow DOGE to consolidate ahead of the next directional move.
The behavior of the volume remains essential. Continued high volume on downward moves would confirm further distribution, while a decline in volume near support would suggest that selling pressure is beginning to exhaust.
