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Dogecoin Price Prediction: As risk aversion increases, DOGE retraces with Bitcoin and Meme coins, with $0.137 becoming a key support level
After the Federal Reserve's latest interest rate decision was announced, the cryptocurrency market shifted to a defensive stance. Traders generally reduced their risk exposure, and Dogecoin (DOGE) along with Bitcoin and other meme coins declined simultaneously. Although the Fed's 25 basis point rate cut was in line with market expectations, policy disagreements and renewed inflation concerns have dampened the appeal of risk assets.
Under macroeconomic pressure, the high volatility characteristic of meme coins was further amplified. After Bitcoin fell below $90,000 over the weekend, market risk appetite significantly decreased, with funds primarily withdrawing from high-beta assets. There were no project-specific negative news for Dogecoin, but in the context of tightening liquidity and increased volatility, traders chose to actively reduce their positions, putting downward pressure on prices.