Dogecoin shaken by US interest rate hike concerns, will it hold the $0.0813 support line?

▲ Dogecoin (DOGE), bear market/AI-generated image ©

As risk-aversion sentiment spreads across the virtual asset market due to hawkish tightening concerns triggered by strong US employment indicators, Dogecoin faces an emergency in defending its key on-chain support line at the $0.08 level.

According to cryptocurrency market data aggregator CoinMarketCap on September 5 (local time), Dogecoin (DOGE) traded at $0.0846, down 3.67% over the past 24 hours, showing relative weakness compared to Bitcoin's (BTC) 2.07% decline. This decline resulted from the US employment report released on September 4 being stronger than expected, weakening expectations for an early interest rate cut by the Federal Reserve (Fed). The total cryptocurrency market capitalization also decreased by 1.79%, with the overall market retreating.

Along with macroeconomic headwinds, capital sector rotation and a failure of technical breakthroughs combined to exacerbate the decline. CoinMarketCap's Altcoin Season Index fell by 5.26% over 24 hours, indicating a shift of funds from altcoins to relatively safer assets like Bitcoin. Technically, the sell-off pressure increased as Dogecoin failed to maintain the $0.088 resistance level, which it had temporarily recovered on September 3, and was pushed back.

Experts analyze that this price correction is due to macroeconomic sensitivity driven by its high beta coefficient and selling pressure linked to Bitcoin's movement, rather than Dogecoin's individual factors. The inability of buying momentum to sustain itself and the resistance encountered at technical resistance levels are identified as the primary reasons for the increased downward momentum.

The short-term market outlook is leaning from neutral to downward pressure. On-chain data indicates that the $0.0813 range, where 35 billion DOGE were previously traded, is considered the primary key support line. If this support line is maintained, it could provide a springboard for a technical rebound towards $0.088. Conversely, if the $0.0813 line breaks, the bullish structure will be damaged, and there is a persistent risk of further decline to around $0.078, where the 30-day moving average is located.

Ultimately, the short-term direction is expected to largely depend on the results of the US Consumer Price Index (CPI) scheduled for release on September 10 and whether Bitcoin reclaims the $80,000 level. As major macroeconomic indicators are about to be released, the key point of observation has emerged as whether Dogecoin can hold the $0.0813 support line and withstand the market's downward pressure.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*