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Dog-themed cryptocurrency Dogecoin (DOGE) has slipped below the critical $0.20 level as the broader crypto market faces intense selling pressure at the start of the week.
Bitcoin and the majority of digital assets are down significantly in the early Tuesday trading session, triggering over $1 billion in liquidations across the board.
The announcement of a crypto strategic reserve on Sunday was not exactly enough of a catalyst to snap the current downward trend on the market as commentators warn that the crypto market may be vulnerable to macroeconomic concerns in the absence of a crypto-specific theme or a catalyst to look forward to.
Vladislav SopovThe day following the announcement, cryptocurrencies reversed course as macroeconomic concerns outweighed the initial excitement surrounding the unveiling of a strategic crypto reserve.
Dogecoin had risen to highs of $0.242 from lows of $0.201 in Sunday's trading session, briefly snapping a five-day consolidation. The rise caused Dogecoin to reclaim the $0.20 level, but it reversed in Monday's session, with Dogecoin falling to lows of $0.192 after reaching highs of $0.24 previously.
The sell-off extended in Tuesday's trading session, with Dogecoin reaching lows of $0.185. At the time of writing, Dogecoin was down 12% in the last 24 hours to $0.191 and down 4.61% weekly.
What's next?
Dogecoin slipped below the daily SMA 200 at $0.244 on Feb. 24 and continues to trade beneath it even at press time.
Godfrey BenjaminThat said, a decisive break above the daily SMA 50 and 200 at $0.284 and $0.244 would be the first evidence of a bullish recovery and would cause Dogecoin to exit its current consolidation range. On the other hand, support might be tested at $0.181 if the declines continue.
Meanwhile, eyes are peeled on developments in the broader crypto market as well as the Dogecoin ecosystem to adjudge Dogecoin's next direction.
Dogecoin Director Timothy Stebbing made it known in a tweet that the Dogecoin Foundation has welcomed five new developers, marking a 50% increase in "firepower" for Dogecoin projects.
Dan Burgin
Vladislav Sopov