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Dogecoin has suffered significant losses in the last 24 hours, as several major altcoins fell sharply on Wednesday.
Dogecoin fell 6.53% in the previous 24 hours to $0.247, in keeping with the overall market's downturn, which saw $508 million in crypto positions liquidated in the last 24 hours — the majority of which were long traders expecting more gains.
The broader crypto market fell as economists anticipated lower chances of a July rate cut, with the U.S. Federal Reserve continuing under intense pressure ahead of its July 30 meeting.
Dogecoin, last week's surprise outperformer, is starting to cool following a 27% weekly surge fueled by talk of a spot ETF and a $500 million reserve build-up by mining firm Bit Origin.
Dogecoin tests critical support
Dogecoin reached highs of $0.288 on Monday; it had last traded at this level in mid-February.
The passage of stablecoin legislation in the U.S. boosted markets at large, including meme coins. The GENIUS Act stablecoin was signed into law last week, firmly establishing regulation for digital tokens.
The rise has now slowed, with Dogecoin currently testing important support, which is critical for its short-term bullish momentum. If today ends in red, Dogecoin will have dropped for the third day in a row.
As seen on the four-hour chart, Dogecoin is currently testing support at the four-hour daily SMA 50 at $0.2399, which held up its price during its recent run to highs near $0.288. Dogecoin must remain above this level to avoid falling below $0.19 or the four-hour daily SMA 200, which would return it to its previous range.
According to Ali, a cryptocurrency analyst, Dogecoin has a chance of reaching $0.36 if the price remains above $0.25.
Vladislav Sopov
U.Today Editorial Team