Dogecoin Cryptocurrency Update

Dog-themed cryptocurrency Dogecoin (DOGE) has slipped below the critical $0.20 level as the broader crypto market faces 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 enough to reverse the downward trend in the market, with commentators warning that the crypto market may be vulnerable to macroeconomic concerns without any specific positive stimuli.

The day after the announcement, cryptocurrencies reversed course as macroeconomic issues overshadowed initial excitement about the strategic crypto reserve.

Dogecoin rose to highs of $0.242 from lows of $0.201 during Sunday’s trading, briefly ending a five-day consolidation. However, it fell to $0.192 on Monday after hitting $0.24 earlier.

The sell-off continued into Tuesday, with Dogecoin dropping to lows of $0.185. At the time of writing, Dogecoin was down 12% in the last 24 hours to $0.191 and down 4.61% weekly.

What’s Next?

Dogecoin slipped below the daily SMA 200 at $0.244 on February 24 and continues to trade beneath it. A decisive break above the daily SMA 50 and 200 at $0.284 and $0.244 would indicate a bullish recovery, moving Dogecoin out of its current consolidation range. Conversely, further declines may test support at $0.181.

Meanwhile, developments in the broader crypto market and the Dogecoin ecosystem will influence Dogecoin’s next direction. Dogecoin Director Timothy Stebbing tweeted that the Dogecoin Foundation has welcomed five new developers, marking a 50% increase in resources for Dogecoin projects.