Dogecoin price has experienced significant losses in recent weeks amidst bearish sentiment in the crypto market. The digital asset has dropped by 18.65% this month and over 13% this year. In the past week alone, Dogecoin has seen a decline of over 5% due to market conditions. Its total market cap has decreased to $8.59 billion, making DOGE the 8th largest cryptocurrency after Solana. The trading volume of Dogecoin has also decreased by more than 18% in the same period.
Dogecoin price has been negatively affected by weak market sentiment, decreased risk appetite, and macroeconomic concerns. The overall crypto market cap has been on a downward trend, reaching its lowest level since June at $1.03 trillion. The total crypto market volume has also decreased by over 18% in the past 24 hours.
Traders have been concerned about global economic uncertainty in recent weeks. On Wednesday, data showed that the UK economy contracted by 0.5% in July, surpassing expectations of 0.2%. The Bank of England (BoE) is expected to raise interest rates by 0.25% to 5.5% in its upcoming meeting as a measure to control high inflation rates. Similarly, the European Central Bank (ECB) is scheduled to meet on Thursday, with expectations of a 0.25 basis point hike to 4.00% due to persistently high inflation.
Investors are eagerly awaiting the release of key economic data, such as the Consumer Price Index (CPI) for August and the Producer Price Index (PPI) data. These data points will guide the Federal Reserve in making monetary policy decisions. Last week, stronger-than-expected economic data raised concerns about further interest rate hikes by the central bank this year.
Investors will also be closely monitoring the upcoming two-day policy meeting of the US Federal Reserve on September 19th and 20th to gain insights into the bank’s interest rate path. According to the CME FedWatch Tool, markets are pricing in a 93% chance of a pause in the Fed’s interest rate hike campaign during the September meeting. However, there are expectations of another hike in November.
Dogecoin Price Outlook
Looking at the daily chart, Dogecoin price has been following a strong bearish trend in recent weeks. The digital asset has been unable to surpass the major obstacle at the 50-day EMA. It remains below the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages. The Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicator are also below the signal line.
Therefore, it is likely that Dogecoin price will continue to be bearish in the short term due to global macroeconomic concerns. If it falls below the immediate support level at $0.05930, the price may further decline and find support at $0.05575. However, if it surpasses the major obstacle at the 50-day EMA at $0.06615, it could lead to further gains and invalidate the bearish outlook.