Usman Salis
Dogecoin (DOGE) is trading at a make-or-break point after falling to $0.247, down 6.53% in 24 hours. The meme coin now faces a critical test that could determine whether it continues its recent bullish run or retreats to lower levels.
Dogecoin got hit hard yesterday along with the rest of the crypto market. The selloff wiped out $508 million in positions, mostly from traders who were betting on more gains. It's all tied to Fed policy fears - people are getting nervous that there won't be a rate cut in July, especially with the Fed meeting coming up on July 30th.
Just last week, DOGE was the market's darling, shooting up 27% on news about a possible spot ETF and Bit Origin's massive $500 million buy. The rally pushed Dogecoin to $0.288 on Monday - levels we hadn't seen since February. The GENIUS Act getting signed also helped boost meme coins across the board by providing clearer crypto regulations.
But now reality's setting in. After three straight days of selling pressure, DOGE is testing whether buyers will step up or if the party's over for now.
DOGE Price Hangs by a Thread at Crucial Support
Right now, Dogecoin is sitting right on top of a key support level that's been holding it up during this whole rally. We're talking about the four-hour SMA 50 at $0.2399 - and if that breaks, things could get ugly fast.
The next stop down would be around $0.19, which lines up with the four-hour SMA 200. Breaking that would basically erase most of the recent gains and send DOGE back to where it was trading before all this excitement started.
DOGE Price Could Still Hit $0.36 - If Support Holds
Here's where it gets interesting. Crypto analyst Ali thinks Dogecoin could still run up to $0.36 if it manages to stay above $0.25. That's a pretty big "if" considering how things have been going lately.
The whole crypto market is on edge right now, waiting to see what the Fed does. If DOGE can hold these levels and the broader market catches a break, we might see that bullish momentum return. But if support fails here, it's probably going to be a rough ride down for Dogecoin holders.
The next few trading sessions will be crucial. Either DOGE bounces here and proves the bulls are still in control, or we're looking at a deeper correction that could test even lower support levels.
Usman Salis
