Dogecoin Price Drops After Fed Rate Cut as Bears Take Control

Dogecoin (DOGE) came under renewed selling pressure after losing a key technical support level, confirming a short-term bearish shift as crypto markets reacted negatively to the Federal Reserve’s latest interest rate decision. DOGE declined roughly 5% during Tuesday’s session, underperforming the broader market as risk appetite weakened following mixed signals from U.S. policymakers.

The Federal Reserve delivered a widely anticipated 25-basis-point rate cut, lowering its target range to 3.5%–3.75%. However, cautious forward guidance and visible disagreement among officials on the pace of future easing weighed heavily on sentiment. For speculative assets like meme coins, the uncertainty triggered position trimming rather than fresh buying, amplifying downside volatility.

Technically, Dogecoin broke decisively below the $0.1310 level, a consolidation zone that had acted as short-term support during recent range-bound trading. Once this level failed, selling pressure accelerated, confirming a genuine breakdown instead of a temporary liquidity sweep. The move was reinforced by a sharp increase in trading volume, which surged to approximately 769 million DOGE, far above recent averages. Elevated volume during a decline typically signals active distribution, suggesting that sellers, not weak liquidity, drove the move.

Price action also reinforced the bearish structure. DOGE formed a lower high near $0.1324 before rolling over, signaling a loss of bullish momentum on the intraday timeframe. The token traded from around $0.1315 down to a session low near $0.1266 before modest dip-buying emerged, lifting prices back toward $0.1291 into the close. However, this rebound occurred on fading volume and left DOGE below key moving averages, limiting its technical significance.

Overnight trading showed continued pressure, with DOGE slipping from $0.1320 to around $0.1314 on steady activity, indicating that sellers remain active on rallies. The former $0.1310–$0.1315 support zone has now flipped into immediate resistance. As long as Dogecoin trades below this range, upside moves are likely corrective rather than trend-confirming.

On the downside, $0.1290 is the first level traders are monitoring. A sustained break below this area could reopen the $0.1266 support zone, while stabilization above $0.1290 may allow for short-term consolidation. Volume trends will remain critical in determining whether bearish momentum continues or selling pressure begins to fade.