Dogecoin suffered a sharp breakdown below key technical support as macroeconomic-driven risk aversion swept crypto markets following the Federal Reserve’s rate decision.
News context
Crypto markets turned defensive after the Federal Reserve announced a 25 basis point rate cut, lowering its target range to between 3.5% and 3.75%. While the reduction itself was expected, internal divisions among policymakers and renewed inflation concerns rattled risk assets, triggering large sell-offs in digital assets.
Meme coins, which tend to have a higher beta during macroeconomic shocks, underperformed as bitcoin fell below $90,000 over the weekend. Dogecoin has seen accelerated downward pressure as traders reduced their exposure amid increased volatility, despite the absence of DOGE-specific negative developments.
Technical analysis
From a technical perspective, DOGE experienced a textbook capitulation event.
The critical support level at $0.1407 failed decisively at 15:00 UTC on December 12. Sales immediately intensified, accompanied by a 348% volume increase, confirming a forced liquidation rather than routine profit-taking. This type of volume expansion in the event of support failure typically marks short-term exhaustion.
Following the breakdown, DOGE printed a session low at $0.1372, where the selling pressure began to fade. Subsequent candles showed progressively lower volume, signaling that sellers were losing control. The structure that followed – a strong bounce with higher lows – achieved a V-shaped reversal, often seen when large participants intervene in panic conditions.
Although broader damage to the trend remains, immediate downside momentum appears exhausted unless $0.1372 fails.
Price Action Summary
DOGE fell 2.6% during the session, from $0.1413 to $0.1376 and trading within a range of $0.0064, representing an intraday volatility of 4.6%.
The largest sell-off occurred during the outage window, when volume reached 1.11 billion tokens, overwhelming supply and rapidly driving prices down. After hitting the low of $0.1372, DOGE stabilized and recovered slightly until the close, finishing near $0.1376.
Late session volatility briefly took the price back to $0.1372 during the 01:37 to 01:53 window, but buyers again defended the level, strengthening it as near-term support.
What Traders Should Know
Dogecoin is now at a technical crossroads.
• The $0.1372 low is the most important near-term support.
• Sustained maintenance above this level favors consolidation rather than continuation
• Reclaiming $0.1407 would signal a repair of the short-term trend towards $0.1425 – $0.1440.
• Failure below $0.1372 opens the way for a decline towards liquidity support at $0.1354.
• The volume profile suggests that the sell-off may already be over.
In short, DOGE has moved from active sales mode to stabilization mode. The next move will depend on whether buyers can defend the $0.137 area and reclaim old support, or if broader macroeconomic pressure forces a further decline.
