Tragically, Dogecoin, the most popular joke cryptocurrency, is in an uncertain situation because crypto prices are falling overall because of adverse data from the US economy.
Cryptocurrency trader Josh Olszewicz stated that Dogecoin has shown a head and shoulders pattern. This is a powerful technical sign that is often seen as a sign of a downturn to come.
Traders keep a close eye on this pattern, which usually means that mood has changed from bullish to bearish. In Olszewicz’s study, there are three clear points: the left shoulder, the head, and the right shoulder, which forms a neckline with the left shoulder. If Dogecoin’s price breaks through this level, it could mean that the trend of going down will continue.
Dogecoin’s Momentum Falls, Market Reacts
This event shows that the price has lost its upward momentum, which is especially clear when it fails to hit new highs. Dogecoin is now worth $0.15 on major exchanges, down more than 4.2% in the last 24 hours, which is in line with the overall direction of the cryptocurrency market.
Bitcoin briefly fell below $63,000 earlier today, but then it rose to $63,622. An analytics company called Fitch thinks it might not be possible that the Federal Reserve will lower interest rates in 2024. This is because new economic data shows that GDP growth is slowing and inflation is rising in the U.S.
Futures traders have altered their predictions. They now expect there to be no rate cuts this year, which is an enormous shift from their previous predictions that there would be three cuts.
This shift in public opinion, marked by a more hawkish stance from the Federal Reserve, might not be favorable for cryptocurrency, especially meme coins, since risky assets usually do better when monetary policy is loose, which seems unlikely at the moment .
