Beneath a turbulent crypto sky, Dogecoin finds itself on a wild ride

Within just two days, the Shiba Inu-adorned coin plummeted over 15%, leaving investors to grapple with uneasy concerns.

Cryptocurrency prices have been sharply on the move in recent trading.

Here's a closer look at what's happening with Dogecoin and other digital tokens on Wednesday.

What happened: Bitcoin has slipped below the $90,000 level and is now trading at roughly $89,000. The coin has dropped 10% in the past seven days and is down 78% year-to-date.

The largest cryptocurrency by market capitalization has been struggling to stay above the crucial $90,000 support. A break below this level could open the door for further declines in the coming days.

Meanwhile, Dogecoin is showing signs of weakness after slipping below its 200-day Simple Moving Average of $0.24. This SMA had been providing support for the meme coin since October.

Dogecoin is currently trading at around $0.199 and has plummeted more than 15% in just two days. The coin is down 12% in the past seven days and has a yearly gain of 255%.

The cryptocurrency market is still grappling with the fallout from last week's Bybit hack, which saw a staggering $1 billion in crypto assets stolen.

Investors are becoming increasingly risk-averse and are either reducing their positions or seeking safer investment alternatives.

This shift in sentiment has also brought about a steep decline in the price of altcoins. An index tracking leading digital tokens is showing its steepest decrease since early August.

What's next: Technical analysis suggests that Dogecoin could find support at the $0.19 level. If the coin manages to hold this support and rebound above the SMA 200, it could aim for a retest of the 50-day SMA at $0.30.

"A move above the 50-day SMA could signal a continuation of the uptrend from the December 2023 lows," according to Benzinga.

Dogecoin has been a popular topic of discussion among crypto enthusiasts and investors, especially due to its large community and endorsements from well-known figures like Elon Musk.

The meme coin is known for its potential for rapid price rallies and deep corrections, making it a volatile investment option.

"Dogecoin is testing the critical $0.19 support. A break below this level could open the door for a move towards the $0.1306 low reached in December 2023," said Benzinga.

"On the other hand, holding this support and rebounding above the SMA 200 could set the stage for a rise towards the 50-day SMA at $0.30, which could act as the next major resistance."

At the time of writing, Dogecoin was trading at $0.199, showing a decrease of 1.07% over the past 24 hours.

Later this week, crypto mining stocks are likely to come into focus as the industry grapples with a pivotal moment in its journey towards sustainability and broader adoption.

As the leading cryptocurrency, Bitcoin's price movements will be closely watched for insights into the market's overall health and direction.

Stay tuned for more updates and analysis on cryptocurrency trends and market shifts.

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