Dogecoin has extended its losing streak in the cryptocurrency market, dropping 11.8% over the past week to trade at $0.1207 on Sunday. The meme coin's decline reflects broader weakness across digital assets as investors pull back from risk amid geopolitical tensions and uncertainty surrounding upcoming Federal Reserve policy decisions. The token fell 2.41% in the past 24 hours, with trading volume plummeting 44% to $426 million. Market analysts point to deteriorating sentiment across altcoins as institutional and retail traders alike rotate capital away from speculative assets. Macro Headwinds Trigger Risk-Off Sentiment The cryptocurrency sector faced renewed selling pressure over the weekend as traditional markets grappled with escalating trade tensions. Bitcoin declined to $88,700 while Ethereum dropped to $2,930, dragging smaller-cap digital assets lower. President Donald Trump's threat to impose 100% tariffs on Canadian goods has intensified concerns about global trade stability. The announcement sent shockwaves through financial markets, prompting investors to reduce exposure to volatile assets. Traders are now focused on the Federal Reserve's interest rate decision scheduled for January 28. Expectations of hawkish commentary from central bank officials have dampened enthusiasm for cryptocurrencies and other growth-oriented investments. The combination of trade war fears and monetary policy uncertainty has created an unfavorable environment for digital assets. Dogecoin, known for its high volatility and speculative nature, has been particularly vulnerable to the shift in market dynamics. Cryptocurrency strategists note that macroeconomic instability typically reduces appetite for high-beta assets. Safe-haven instruments have attracted significant inflows as investors seek to preserve capital during periods of heightened uncertainty. Technical Indicators Point to Further Weakness Dogecoin currently trades below its 30-day average price of $0.134, signaling sustained bearish momentum. The Relative Strength Index sits at 38.61, indicating downward pressure without reaching oversold territory. The MACD histogram remains negative at -0.0018943, confirming the continuation of the downtrend. Price action has formed a pattern of lower highs and lower lows, suggesting additional downside risk in the near term. Technical analysts identify $0.116 as the next potential support level based on recent swing lows. The absence of significant buying interest at current prices indicates limited conviction among market participants. Chart patterns show no clear reversal signals, leaving bears in control of short-term price direction. Volume analysis reveals thinning liquidity, which could amplify price movements in either direction.
