Dogecoin's price is experiencing a notable decline today, driven by a combination of macroeconomic factors and market-specific developments. The broader cryptocurrency market has been under pressure due to reduced expectations of Federal Reserve interest rate cuts and a potential massive Bitcoin sell-off by the U.S. government, which has contributed to a $60 billion drop in the total market capitalization of the crypto space. This environment of risk aversion has particularly impacted meme coins like Dogecoin, which saw its market cap fall significantly as traders moved away from high-risk assets.
Additionally, Dogecoin's price action has been influenced by technical factors. The cryptocurrency failed to maintain its position above key support levels, leading to a bearish crossover in its moving averages. Despite a bullish divergence in the RSI, indicating potential for a rebound, the immediate market sentiment remains cautious. The recent surge in supply and increased liquidations have further exacerbated the downward pressure on Dogecoin's price.
Dogecoin is currently trading at $0.3212, marking a 6.17% decrease from its previous close of $0.3423.