Dogecoin broke below a critical technical support level after the Federal Reserve announced its latest rate decision, with surging trading volume confirming increased selling pressure. The meme token fell 5% as traders reduced positions following the central bank's 25 basis point rate cut and cautious outlook on future monetary policy.
What Happened: Fed Decision Triggers Selloff
The Federal Reserve lowered its target rate range to 3.5% to 3.75% on Tuesday, but internal disagreements among policymakers regarding the pace of further easing dampened risk appetite for digital assets.
Meme tokens underperformed during the broader market pullback, with Dogecoin facing particularly heavy pressure as traders exited positions after consolidating near recent resistance levels.
The token decisively broke below the $0.1310 consolidation area, a level that had served as short-term support during range-bound trading.
Trading volume surged to 769.4 million tokens during the decline, far above recent averages, confirming active selling rather than a liquidity-driven drift.
After forming a lower high near $0.1324, the price retreated further to an intraday low near $0.1266 before stabilizing. Dogecoin rebounded modestly to close near $0.1291, though the recovery showed weakening volume and the price remained below key moving averages.
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Why It Matters: Technical Breakdown Confirmed
The drop below $0.1310 has placed Dogecoin back into a corrective phase. Unless this level is convincingly reclaimed, any rebound may face renewed selling pressure, with the move appearing driven by positioning and macro market sentiment rather than token-specific fundamentals.
The $0.1310 to $0.1315 area now constitutes immediate resistance.
On the downside, $0.1290 represents the first key level to watch, with a breach potentially reopening the $0.1266 support area.
Volume trends remain crucial for determining the next move. Sustained high volume during declines would confirm further distribution, while declining volume near support levels would indicate easing selling pressure.
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