Dogecoin Faces Continued Price Decline Amid Market Uncertainty
Dogecoin (DOGE) experienced another dip on Monday, mirroring the broader downturn in both crypto and stock markets. The meme coin’s value fell to $0.1628, its lowest as March 12. This represents a meaningful 66% drop from its peak in December.
The decline coincides with a risk-off sentiment among investors, driven by anticipation of Donald Trump’s “Liberation Day.” This event involves reciprocal tariffs on U.S. trading partners, possibly leading to a recession. these concerns have fueled fear in both crypto and stock markets. The crypto fear and greed index is now at 24, indicating a fearful market, while the stock gauge is in the extreme fear zone at 18.
However, there’s a silver lining. A looming recession might prompt the federal Reserve to intervene. Historically, the Fed has responded to major crises, such as the COVID-19 pandemic and the Global Financial Crisis, by cutting interest rates and implementing quantitative easing.
Technically, DOGE has been in a downtrend, falling from $0.4836 in December to $0.1630. It has broken below the 200-day Exponential Moving Average and a key support level at $0.2260. Despite this, a falling wedge pattern suggests a potential bullish reversal. If the coin forms a double-bottom at $0.1430, it could rally to $0.2628, a 60% increase. However, a drop below $0.1430 would negate this bullish outlook.
