Dog-themed cryptocurrency Dogecoin (DOGE) has slipped below the critical $0.20 level

Bitcoin and the majority of digital assets are down significantly in the early Tuesday trading session, triggering over $1 billion in liquidations across the board.

Dogecoin (CRYPTO: DOGE) slipped below the critical $0.20 level on Tuesday as the broader crypto market faced intense selling pressure at the start of the week.

Bitcoin and the majority of digital assets are down significantly in the early Tuesday trading session, triggering over $1 billion in liquidations across the board.

The announcement of a crypto strategic reserve on Sunday was not exactly enough of a catalyst to snap the current downward trend on the market as commentators warn that the crypto market may be vulnerable to macroeconomic concerns in the absence of a crypto-specific theme or a catalyst to look forward to.

Dogecoin price action: Dogecoin has slid 12% in the last 24 hours to $0.191 and is down 4.61% over a seven-day period. In comparison, Bitcoin is down 2.6%.

Dogecoin has risen to highs of $0.242 from lows of $0.201 in Sunday's trading session, briefly snapping a five-day consolidation. The rise caused Dogecoin to reclaim the $0.20 level, but it reversed in Monday's session, with Dogecoin falling to lows of $0.192 after reaching highs of $0.24 previously.

The sell-off extended in Tuesday's trading session, with Dogecoin reaching lows of $0.185. At the time of writing,

What drove the move: The day following the announcement, cryptocurrencies reversed course as macroeconomic concerns outweighed the initial excitement surrounding the unveiling of a strategic crypto reserve.

According to Benzinga, the lack of a theme or a specific event in the crypto space may also leave the market vulnerable to broader market concerns.

"In the absence of a crypto theme or an event to look forward to, the market may be vulnerable to broader market concerns such as inflation or interest rates," said one market commentator.

"We saw a rally in cryptocurrencies on Sunday following the announcement of a strategic crypto reserve, but the gains were quickly wiped out on Monday as the market turned its attention to macroeconomic concerns."

With no major crypto events on the horizon, traders will be focusing on any developments in the Dogecoin ecosystem to adjudge the next direction for the memecoin.

Dogecoin Director Timothy Stebbing made it known in a tweet that the Dogecoin Foundation has welcomed five new developers, marking a 50% increase in "firepower" for Dogecoin projects.

What's next: Dogecoin slipped below the daily SMA 200 at $0.244 on Feb. 24 and continues to trade beneath it even at press time.

That said, a decisive break above the daily SMA 50 and 200 at $0.284 and $0.244 would be the first evidence of a bullish recovery and would cause Dogecoin to exit its current consolidation range. On the other hand, support might be tested at $0.181 if the declines continue.