Key Highlights
- The cryptocurrency market has reversed recent gains, with bullish traders losing over $800 million in the past 24 hours.
- DOGE has dropped 6% after failing to reach $0.26.
DOGE Declines Due to Poor PPI Data
The cryptocurrency market has reversed its recent gains following disappointing Producer Price Index (PPI) data from the United States. Bitcoin, which hit a historic high of $124,000 on Thursday, quickly lost ground, falling below $119,000.
Ether was trading above $2,700 early Thursday but has seen a 2% decline since failing to surpass its current record price. Meanwhile, DOGE, the native coin of the Dogecoin blockchain, has underperformed among the top ten cryptocurrencies by market capitalization, dropping 6% over the last 24 hours.
This downward trend saw DOGE test the $0.21 support level earlier. It has since made a slight rebound, now trading above $0.23 per coin.
The market collapse was largely triggered by recent PPI data released on Thursday by the U.S. Bureau of Labor Statistics. The final demand PPI rose by 3.3% year-on-year in July, exceeding analysts’ expectations of 2.5% and the previous month’s 2.4% increase.
Additionally, the core annual PPI increased by 3.7% in July, up from 2.6% in June. These figures have amplified concerns about inflation in the U.S. and raised questions about whether the Federal Reserve will cut interest rates in its upcoming Federal Open Market Committee (FOMC) meeting.
DOGE Eyes $0.25 Resistance Level
The four-hour DOGE/USD chart reflects a bearish outlook due to Dogecoin’s recent performance. Technical indicators suggest a weakening of bullish momentum, although a potential rebound could occur if buyers regain market control.
The MACD lines remain in positive territory, indicating that bears have not yet taken complete control. With a MACD reading of 54, the DOGE/USD pair has not entirely flipped to a bearish stance.
If bulls regain control, DOGE could recover to the nearest resistance level, targeting the TLQ range of $0.256 in the coming hours or days. A sustained upward movement could see it surpass the peak of $0.28 achieved in July. However, for this to happen, DOGE’s RSI needs to remain above the neutral mark of 50.
Conversely, if the bearish momentum intensifies, DOGE could dip lower, retesting last week’s low of $0.1874. Bulls are expected to defend this level vigorously, as failing to do so could result in DOGE falling below $0.15 for the first time since June.
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