Doge plummets 6% as crypto bulls face staggering losses; see the forecasts.

Key Highlights

• The cryptocurrency market has reversed recent gains, with bullish traders facing losses exceeding $800 million in the past 24 hours.
• DOGE dropped by 6% after failing to reach the $0.26 mark.

DOGE Falls Amid Poor PPI Data

The cryptocurrency market has seen a reversal of its recent gains, largely attributed to disappointing Producer Price Index (PPI) data from the United States. Bitcoin reached an all-time high of $124,000 on Thursday, but quickly gave up those gains, falling below $119,000.

Meanwhile, Ether was trading above $2,700 early Thursday but has since lost 2% of its value after failing to surpass its current record price. Notably, DOGE, the native coin of the Dogecoin blockchain, has been one of the worst performers among the top ten cryptocurrencies by market capitalization, declining 6% over the last 24 hours.

This bearish trend saw DOGE test the support zone at $0.21 just hours ago; however, it has managed a slight rebound and is currently trading above $0.23 per coin.

The market decline followed the release of PPI data from the U.S. Bureau of Labor Statistics on Thursday. The PPI for final demand rose by 3.3% year-over-year in July, surpassing analysts’ expectations of 2.5% and up from 2.4% in June.

Additionally, the core PPI increased by 3.7% in July, compared to 2.6% in June. These figures have reignited concerns about inflation in the U.S. and raised questions about whether the Federal Reserve will cut interest rates at its next FOMC meeting.

DOGE Aims for $0.25 Support Level

The four-hour DOGE/USD chart is bearish, reflecting the recent performance of Dogecoin. Technical indicators are showing signs of waning bullish momentum but could recover if bulls regain control of the market.

The MACD lines are still in positive territory, indicating that bears have not yet gained full control. The MACD reading of 54 suggests that the DOGE/USD pair has not completely flipped.

If bulls take back control, DOGE could regain the nearest resistance and the $0.256 support zone in the coming hours or days. A sustained bullish run could allow it to surpass the July high of $0.28. However, for this to happen, DOGE’s RSI must remain above the neutral 50 mark.

On the flip side, if bearish momentum strengthens, DOGE could fall lower and test last week’s low of $0.1874. Bulls are expected to fiercely defend this level, as a breach could see DOGE drop below $0.15 for the first time since June.