- Summary:
- The crypto market is drowning in FUD sentiment, and that presents a huge task for Dogecoin price. But there could be a way around it.
Fear Uncertainty and Doubt (FUD) sentiment persists in the global cryptocurrency market, and that sent Dogecoin price lower on Wednesday, losing 2.1 percent to trade at $0.1005 at the time of writing. The CoinMarketCap Fear and Greed Index reading shifted further left to read 32, signaling that fear prevailed. Furthermore, the market capitalisation revisited the sub-$2 Trillion mark, underlining bearish dominance.
Dogecoin has dropped its mojo in recent days, with the meme coin’s 50-EMA above the 20-EMA level. However, it was at +4.5 percent on the weekly chart, signaling recent bullishness that could slow down a selloff. The good news is that the current decline is not specific to DOGEUSD, but market-wide. That provides confidence of a potential recovery alongside the rest of the market, especially if Bitcoin price returns above the $60k mark.
Much may depend on Dogecoin’s ability to stay above the psychological $0.1000 mark in the near-term. Also, market sentiment surrounding the US economy will play a major role in injecting confidence in the crypto market. However, that will have to wait for next week’s interest rate pronouncement by the Federal Reserve.
The cryptocurrency market has, in recent weeks, shown a tighter correlation with the mainstream assets markets such as stocks and commodities. Furthermore, the era of thousands of meme coins minted on platforms like SunPump and Pump.Fun has raised the pressure on OG meme coins like Dogecoin and Shiba Inu.
DOGE coin price outlook
Dogecoin price will likely be on the downside trajectory if resistance persists at 0.1015. With the sellers in control, initial support will likely be at 0.0999, but extended control could enable a breach of that mark to send the price lower to test 0.0985.
Alternatively, moving above 0.1015 will signal the onset of bullish control, with initial resistance likely to be at 0.1030. However, if the bulls break past that mark, it will invalidate the downside narrative and potentially strengthen the upside momentum to test 0.1045.
