Dogecoin (DOGE) has faced a 6% drop today, hitting an intraday low of $0.3404 on Dec. 19, as Bitcoin's (BTC) slip below the $100,000 mark triggered a wave of sell-offs across the memecoin sector. This decline outpaced the broader crypto market, which fell by approximately 3.5% during the same period.Key Factors Behind DOGE’s PullbackMarket-Wide Sell-Off Post Rate CutThe Federal Reserve's 25 basis-point rate cut on Dec. 18 was followed by a hawkish press conference from Chair Jerome Powell, dampening investor sentiment. Powell's remarks about limited rate cuts in 2025 and an increased 2025 inflation outlook from 2.1% to 2.5% further weighed on the market. This led to Bitcoin’s 2% drop, rippling through the memecoin market, with Dogecoin (DOGE) and other top memecoins like Shiba Inu (SHIB) and Pepe (PEPE) experiencing declines.Increased Trading Volume Amid LossesThe memecoin market witnessed over $10 billion in value wiped out within 24 hours, while trading volume surged nearly 50%. This highlights the heightened risk-off sentiment among investors, particularly in speculative assets like memecoins.Bearish Market SentimentSantiment data shows a downturn in Dogecoin’s social sentiment since Dec. 3, reflecting growing impatience among traders amid prolonged price consolidation. Negative sentiment could, however, signal a potential reversal if DOGE manages to hold its current support levels.Technical Weakness and ResistanceDOGE’s recent decline followed a bearish divergence between its price and the relative strength index (RSI), a common signal of weakening uptrend momentum. Key resistance zones, including $0.40–$0.42 and $0.47, have further hindered DOGE’s upward movement.Outlook for DOGEProfessional trader Natalie Dormer notes that the pullback has brought DOGE to a critical support level around $0.35, aligning with its 50-day exponential moving average. Dormer remains cautiously optimistic, stating, “Pullbacks and volatility do happen in any uptrend, but our structure still favors upside for $DOGEUSD.”While the current bearish sentiment poses challenges, holding key support levels could pave the way for a rebound, provided broader market conditions stabilize, according to Cointelegraph.
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