Cover image via U.Today

Dogecoin (DOGE), the dog-themed cryptocurrency, has fallen below the crucial $0.20 mark as the broader crypto market experiences significant selling pressure early this week.

Bitcoin and most digital assets have seen substantial declines in early Tuesday trading, resulting in over $1 billion in liquidations across the market.

The Sunday announcement of a crypto strategic reserve proved insufficient to reverse the downward trend. Analysts warn that the market remains vulnerable to macroeconomic factors in the absence of a specific crypto catalyst or positive narrative.

Following the announcement, cryptocurrencies reversed their initial gains as macroeconomic concerns overshadowed the positive sentiment surrounding the strategic reserve.

Dogecoin briefly broke a five-day consolidation period on Sunday, rising from $0.201 to a high of $0.242. This briefly reclaimed the $0.20 level, but Monday saw a reversal, with DOGE falling from its previous high of $0.24 to a low of $0.192.

The sell-off continued into Tuesday, pushing Dogecoin down to $0.185. At the time of writing, Dogecoin is down 12% in the last 24 hours, trading at $0.191, and down 4.61% for the week.

What's Next?

Dogecoin fell below its 200-day Simple Moving Average (SMA) of $0.244 on February 24th and remains below it.

A decisive break above both the 50-day SMA ($0.284) and the 200-day SMA ($0.244) would signal a bullish recovery and mark an exit from its current consolidation range. Conversely, further declines could test support at $0.181.

Market watchers are closely monitoring developments in the broader crypto market and the Dogecoin ecosystem to determine Dogecoin's future trajectory. The Dogecoin Foundation recently announced the addition of five new developers, representing a 50% increase in development capacity, as tweeted by Director Timothy Stebbing. Read the original article on U.Today