Dogecoin Plummets Under Bearish Pressure

After experiencing a 7% loss in the past 30 days, Dogecoin (DOGE) continues to face intense selling pressure. The top memecoins have had a tough year, with DOGE losing its 10 cents support area and then retreating by another 30%. With no floor in sight, the outlook for DOGE seems dire as it has formed a bearish price setup.

The Federal Reserve's hawkish stance on interest rates is one of the main reasons behind investors' hesitation to invest in DOGE. Analysts expect future rate hikes, making low-risk assets more attractive than niche cryptocurrencies. Additionally, retail investors who propelled DOGE to the top have been battered during this bear market and remain heavily depressed.

Low trading volumes for DOGE could set the stage for a pronounced decline. Between October and December 2023, when volumes were similarly low, DOGE hit a cycle low of around $0.058 before recovering. Given the current weak interest in DOGE, it's likely that the token will revisit these low levels to find liquidity.

A bearish flag pattern has formed on the daily chart, indicating a temporary pause after a pronounced downtrend. If this breakout happens, DOGE could drop by 19% to $0.058.