Dogecoin led the decline among major cryptocurrencies on Wednesday, falling by about 7% to around $0.089. The reason is that a broader sentiment of risk aversion impacted Bitcoin, Ethereum, and XRP.
This decline does not seem to be driven by any significant progress in the dogecoin sector. On the contrary, DOGE is exacerbating a wave of selling across the market, as rising oil prices, increasing yields on U.S. Treasury bonds, and a stronger dollar are tightening the financial conditions for speculative assets.
Bitcoin once fell below $84,000, Ethereum dropped by about 4%, while XRP saw a decline of over 3%. Dogecoin's decline was even more significant, reinforcing its characteristic performance as part of the broader crypto market with a higher beta version.
This reversal occurred just one day after the first daily golden cross in DOGE in 14 months was formed. At that time, its 50-day moving average crossed above the 200-day moving average.
Oil prices, yields, and the US dollar are all pressing down on the crypto market simultaneously.
The macroeconomic backdrop has rapidly deteriorated. Brent crude oil prices have risen above $100 per barrel, as attacks on oil tankers have reignited concerns about disruptions to supplies from the Middle East. Meanwhile, the yield on 10-year U.S. Treasury bonds has climbed above 5.3%, while the U.S. dollar index has strengthened to above 102.
Higher yields make interest-bearing assets more competitive compared to cryptocurrencies, while a stronger dollar typically tightens global financial conditions. Rising oil prices also pose another challenge, as they exacerbate inflation concerns and may limit the pace at which central banks can ease monetary policy.
As Bitcoin declines, liquidations across the market are also accelerating, with the total amount of liquidations rising to over $500 million.
DOGE is testing the support level between $0.088 and $0.09
This round of selling pushed Dogecoin back into the range that it had occupied multiple times in September as an important technical area.
DOGE has fallen below the short-term moving average, and the 61.8% Fibonacci retracement level is close to $0.0887. The 100-day exponential moving average is near $0.086; if selling pressure continues, this will become the next area that needs attention.
Therefore, the current situation is relatively simple. If the price can be maintained within the range of approximately $0.088 to $0.09, DOGE will still be within a broader rebound structure. If it effectively breaks below this range, it could fall to $0.086, or even further below $0.08; this area previously served as support during the leverage correction in September.
