Dogecoin Price Plunges as Fed Chair Sets Off Alarm Bells
• Dogecoin (DOGE) has dropped back after an attempt to push back to the north of the $0.076 level earlier in the day.
• News of Dogecoin whales moving significant amounts of tokens off of Binance and into self-custody has failed to lift optimism in the Dogecoin market.
• A break back to the north of resistance in the upper $0.07s will be a tough ask in the absence of a big improvement in broader crypto market sentiment.
Factors Affecting Dogecoin Price
Dogecoin (DOGE), which powers the Dogecoin blockchain, recently attempted to move past the $0.076 level but was unsuccessful due to a spike in US dollar and US yields combined with downside in US stocks following hawkish remarks from Fed Chair Jerome Powell warning that interest rates could rise again if inflationary pressures remain too hot. DOGE is now trading around $0.074, down around 1% on the session, having found support at weekend lows near $0.072s.
On Tuesday, 67,455,315 DOGE were transferred from Binance – one of world’s largest exchanges – to an unknown wallet according to blockchain monitoring Twitter account Whale Alert; these tokens are worth roughly 5 million USD at current prices. Typically, investors moving significant sums of tokens off exchanges is seen as bullish for a cryptocurrency since it implies they have no plans to sell their tokens on exchange; conversely, significant exchange inflows tend to be bearish for cryptocurrencies as it could indicate increased sell pressure.
Dogecoin bulls hope that DOGE can continue finding support above $0.072 as breaking below this mark could lead towards its late 2022 lows near $0.066 area; this is due to its recent break below its 200-Day Moving Average (at 078$) and support from late February’s lows near 0782$. Achieving gains beyond upper 0$7s resistance will be hard without considerable improvement in broader crypto market sentiment .