Dogecoin lost an important technical level following the Federal Reserve’s latest interest rate decision, with heavy volume confirming a short-term shift towards bearish control.
News background
Dogecoin fell 5% during Tuesday’s session as crypto markets reacted to the Federal Reserve’s 25 basis point interest rate cut and cautious forward guidance. While rates were cut to a target range of 3.5%-3.75%, policymakers signaled internal disagreement over the pace of further easing, dampening risk appetite across digital assets.
Meme coins underperformed during the broader pullback, with DOGE facing heavy pressure as traders reduced exposure following recent consolidation near resistance. The move seemed driven more by positioning and macro sentiment than by token-specific fundamentals.
Technical analysis
DOGE decisively broke below the $0.1310 consolidation zone, a level that had acted as short-term support during the recent range-bound trade. When this level failed, selling quickly accelerated, confirming a collapse rather than a short liquidity sweep.
Trading volume rose to 769.4 million tokens during the drop, well above recent averages, validating the move as active distribution rather than low-liquidity operation. The price formed a lower high near $0.1324 before collapsing, reinforcing the bearish structure on the intraday time frame.
From a structural point of view, the loss at $0.1310 moves DOGE back into a corrective phase where rallies are now likely to face selling pressure unless this level is convincingly recovered.
Price action overview
DOGE traded from $0.1315 down to a session low near $0.1266 before stabilizing. Buyers entered lower levels and produced a modest rally back towards $0.1291 at the close.
However, the recovery occurred on decreasing volume and left the price below the key moving averages. Overnight trading showed continued pressure, with DOGE falling from $0.1320 to $0.1314 on steady but controlled activity, suggesting sellers remain active on rallies.
What traders should know
The $0.1310-$0.1315 zone now acts as immediate resistance. As long as the DOGE remains below this area, upward movements are corrective rather than trend-confirming.
On the downside, $0.1290 is the first level to watch. A sustained break below this floor would likely reopen the $0.1266 support area. Conversely, holding above $0.1290 could allow DOGE to consolidate before the next directional move.
Volume behavior remains key. Continued high volume on downside moves will confirm further distribution, while declining volume near support suggests selling pressure is starting to dissipate.
