Dogecoin's price continued its decline amid the downturn in crypto and stock markets. Key factors include rising recession fears and uncertainty around US tariffs.
Reasons for Market Decline
Dogecoin's price fell on Monday as investors embraced a risk-off attitude due to upcoming US tariffs and potential recession risks. The crypto fear and greed index dropped to a fear zone of 24, while the stock-focused gauge moved into an extreme fear zone at 18. These factors contribute to pressure on crypto assets.
Technical Analysis of Dogecoin
Technical analysis shows DOGE in a strong downtrend, having decreased from last December's high to its current low. The price has breached important support levels, indicating a continued downward trend. However, a reversal pattern may suggest a potential change in trend.
Possible Scenarios for Dogecoin
The rising possibility of a recession might prompt the US Federal Reserve to intervene, which could support the crypto market. If Dogecoin falls further below $0.1430, the bullish scenario might be invalidated, but a rebound towards April could create conditions for a 60% rise.
As investors continue to monitor economic developments, Dogecoin and other cryptocurrencies remain under pressure. The forthcoming US tariff announcement and potential Federal Reserve actions are key determinants.
