Dogecoin‘s value has taken a hit amidst a broader decline in the cryptocurrency market. On April 27, DOGE saw a decrease of 4.82%, settling at approximately $0.15.
This decline was more pronounced compared to the overall crypto market, which experienced a 2.25% drop on the same day.
Over the past month, Dogecoin has plummeted by 38% from its recent peak of $0.229.
The recent downturn in Dogecoin’s price can be attributed to several factors, with one significant influence being the release of the U.S. gross domestic product (GDP) report on April 25.
The U.S. economy’s growth in the first quarter of 2024 fell short of expectations, recording a 1.6% increase instead of the anticipated 2.5%.
Additionally, there was only a 0.3% rise in personal consumption expenditures for March.
Consequently, expectations for Federal Reserve interest rate cuts in 2024 have been revised down to just 33 basis points, a considerable reduction from earlier projections.
The anticipation of sustained high interest rates has led to a rise in the yield on the benchmark U.S. 10-year Treasury note, reaching 4.739% on April 24, its highest level in five months.
This increase has made riskier crypto assets less appealing to investors. For instance, on the day when the yield peaked, five spot Bitcoin exchange-traded funds (ETFs) experienced outflows totaling $217 million.
READ MORE: Bitcoin Holds Firm Above $63,000 Despite Regulatory Scrutiny and Economic Turbulence
Furthermore, Dogecoin’s open interest (OI) has declined to $865.63 million on April 27 from its peak of $2.21 billion nearly a month ago.
Additionally, the funding rate has dropped to 0.0063% per eight hours.
These developments indicate a prevailing bearish sentiment in the market, with traders adopting a cautious stance due to uncertainty surrounding Dogecoin’s future price movements or reduced interest in high leverage trading.
Today’s decrease in Dogecoin’s price appears to be a continuation of a selling trend that started when the price encountered resistance marked by a descending trendline and the 50-day exponential moving average (50-day EMA).
The descending trendline resistance has consistently hindered DOGE’s upward movements over the past 30 days.
Currently, the cryptocurrency is testing its multi-week ascending trendline support, suggesting a potential rebound that could propel the price towards the descending trendline resistance at around $0.159 by the end of April.
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