Dogecoin (DOGE) Price Prediction: Market Loses $120B as Bitcoin (BTC) Momentum Signals Exhaustion

The Federal Reserve's interest rate cut on Wednesday failed to spur the crypto market,, with the market losing about $120 billion within 24 hours of the announcement.

The Federal Reserve’s interest rate cut on Wednesday did little to spur the crypto market, which lost about $120 billion in the 24 hours following the announcement.

Digital asset prices are closely tied to the US dollar, so lower interest rates should have shifted the momentum towards crypto coins. However, Dogecoin price extended its decline and was down by 0.1 percent at the time of writing to trade at $0.357.

Bitcoin, the cryptocurrency market bellwether, saw its upward momentum dissipate, declining from the precipice of testing $110K to the edge of five-figure price territory. That triggered a wave of liquidations in the market, signaling declining investor confidence.

According to Coinglass, Dogecoin was the third-most-liquidated crypto asset in the hour leading up to this writing, after Bitcoin and Ethereum. DOGE had $416.65K worth of long liquidations, signaling investors’ unwillingness to hold on to the asset for a longer period. That could invite substantial downward pressure on Dogecoin price if the trend continues.

Meanwhile, CoinMarketCap data shows that DOGE’s traded volume rose by 52% in the last 24 hours, adding credence to the declining investor confidence. A rise in an asset’s traded volume during a market downturn typically signals the strengthening of s downward momentum. In addition, DOGE price is down by 13% in the last week and has lost -3.3% in the last month. That has resulted in a weak traction that could extend the downside.

Dogecoin price pivots at $0.364 and the Money Flow Index (MFI) calls for further downside. With the sellers in control, Dogecoin price will likely find the first support at $0.352. However, a stronger downward momentum could break below that level and test $0.340.

Alternatively, moving above $0.364 will shift the momentum towards the upside. In that case, DOGE price could encounter the first resistance at $0.380. Extended control by the buyers could breach that barrier, invalidating the downside narrative. Also, the momentum could spur up the price further to test $0.390.