Dogecoin price has been range-bound for the past few days as investors weigh up the recent banking crisis on fears that the global economy may be headed into a recession. The meme coin has jumped by more than 3% in the past week and gained 7% in its year-to-date price. Dogecoin ranks as the 8th largest cryptocurrency by market cap after Cardano and before Polygon.
Dogecoin price was trading in the red on Friday, wiping its gains from Thursday’s trading session. The coin has been under pressure for the past month as many investors seem to be backing out of their investments in the altcoin. Elon Musk, CEO of SpaceX and Tesla recently showed a loss of enthusiasm for the meme-inspired cryptocurrency as he expressed his new interest in AI.
Elon Musk’s tweets have always had a substantial impact on the Dogecoin price. Earlier this month, Musk took to his Twitter to announce that he had lost his interest in crypto and gained a newfound interest in AI. His remarks saw the DOGE price dip by nearly 5%, contributing to the significant decline in the coin’s price this month.
The global crypto market has been holding steady above the crucial $1 trillion level for the past few days. At press time, it was at $1.16 trillion, a 0.31% decrease over the last day. The total crypto market volume slipped by 13.78%. More specifically, Dogecoin’s total market cap declined by 3.70% over the last day, while the total volume of the altcoin traded dropped by 37.83%.
Hopes that the US Federal Reserve will ease its interest rate hikes this year, have boosted the global crypto market. On Wednesday, the Fed announced a 25-basis point hike in the federal funds to 5%, maintaining its “terminal rate” in the range of 5%-5.25%. Higher interest rates tend to weigh on risk assets such as cryptocurrencies and stocks.
Dogecoin price has been trading between the tight range of $0.0700 and $0.07925 for the past few days. At the time of writing, the altcoin was trading 3.10% lower at $0.0749. On the 4-hour chart, DOGE is trading along and below the 25-day and 50-day moving averages, respectively. Its Relative Strength Index (RSI) has inched below the neutral zone, while the Moving Average Convergence Divergence (MACD) indicator points to an increased selling momentum.
Therefore, the Dogecoin price is likely to remain range-bound in the subsequent sessions, trading in the range between $0.0705 and $0.0790. An increase in buying pressure might push the crypto higher to its next target $0.0820. Even so, I expect $0.0650 to remain a steady support level for the Doge price.