Dogecoin suffered a sharp drop below key technical support as macro-driven risk aversion swept through crypto markets following the Federal Reserve’s rate decision.
News background
Crypto markets went on the defensive after the Federal Reserve announced a 25 basis point rate cut, reducing its target range to 3.5%-3.75%. While the cut itself was expected, internal division among policymakers and renewed concerns about inflation rattled risk assets, triggering broad sell-offs in digital assets.
Meme coins, which tend to have a higher beta during macroeconomic crises, underperformed when bitcoin fell below $90,000 over the weekend. Dogecoin experienced accelerated downward pressure as traders reduced their exposure amid increased volatility, even though there were no negative DOGE-specific developments.
Technical analysis
From a technical standpoint, DOGE experienced a textbook capitulation event.
The critical support level of $0.1407 failed decisively at 15:00 UTC on December 12. Selling immediately intensified, accompanied by a 348% increase in volume, confirming a forced liquidation rather than routine profit-taking. This type of volume expansion upon support failure usually marks short-term exhaustion.
Following the crash, DOGE posted a session low of $0.1372, where selling pressure began to fade. Subsequent candles showed progressively lower volume, indicating that sellers were losing control. The structure that followed (a strong bounce with higher lows) completed a V-shaped reversal, often seen when large participants intervene during panic conditions.
While damage to the broader trend remains, immediate bearish momentum appears exhausted unless the $0.1372 level fails.
Price Action Summary
DOGE fell 2.6% during the session, falling from $0.1413 to $0.1376 and trading in a range of $0.0064, representing intraday volatility of 4.6%.
The steepest selling came during the breakout window, when volume skyrocketed to 1.11 billion tokens, overwhelming bids and quickly pushing the price lower. After setting the low of $0.1372, DOGE stabilized and recovered modestly through the close, ending near $0.1376.
Late session volatility saw the price briefly return to $0.1372 during the 01:37-01:53 period, but buyers defended the level again, reinforcing it as short-term support.
What traders should know
Dogecoin is now at a technical crossroads.
• The low of $0.1372 is the most important support in the short term.
• Sustained maintenance above this level favors consolidation rather than continuation.
• Recovering $0.1407 would indicate a repair of the short-term trend towards $0.1425–$0.1440
• A failure below $0.1372 opens a decline towards liquidity support at $0.1354
• Volume profile suggests capitulation sale may already be complete
In short, DOGE has moved from active selling mode to stabilization mode. The next move will depend on whether buyers can defend the $0.137 area and reclaim previous support, or if broader macro pressure forces another leg lower.
