Dogecoin Price: Keep an Eye on Key Inflation Data

Dogecoin price has recorded significant losses over the past few weeks amid bearish cryptocurrency market sentiment. The digital asset is down 18.65% this month and down more than 13% so far this year. Additionally, Dogecoin fell more than 5% last week due to the market downturn. The total market capitalization of these assets fell to $8.59 billion last day, ranking DOGE 8th.^Day After Solana. During the same period, the total transaction volume of digital currency also decreased by more than 18%.

economic concerns

Dogecoin price has been in the red over the past few weeks due to weak market sentiment, declining risk appetite, and macroeconomic concerns. The overall cryptocurrency market capitalization is also showing a downward trend, with the cryptocurrency market capitalization falling to $1.03 trillion, the lowest level since June. The overall cryptocurrency market size has decreased by more than 18% in the last 24 hours.

Traders have been anxious over the past few weeks due to global economic uncertainty. Data released on Wednesday showed the UK economy contracted by 0.5% in July, ahead of the 0.2% expected. The Bank of England is expected to raise interest rates by 0.25-5.5% at its meeting next week to curb high inflation. Ahead of the BoE, the European Central Bank (ECB) is scheduled to meet on Thursday, expecting a 0.25 basis point hike to 4.00% amid persistently high inflation.

Investors are closely watching key consumer price index (CPI) data for August due to be released later Wednesday. Producer Price Index (PPI) data is released on Thursday. Economic data will guide the next steps in the Fed’s monetary policy decisions, according to central bank officials. A string of stronger-than-expected economic data released last week has renewed concerns about further interest rate hikes by the central bank this year.

Investors are paying attention to the US Federal Reserve’s two-day policy meeting scheduled for the 19th.^Day and 20^Day In September, we’re looking for clues about the bank’s path of interest. According to statistics from the CME FedWatch Tool, the market sees a 93% chance that the Federal Reserve’s rate hike campaign will be halted at its September meeting. However, expectations are high for another hike in November.

Dogecoin price forecast

According to the daily chart, Dogecoin price has been on a strong downward trend over the past few weeks. The digital asset failed to clear a major hurdle at the 50-day EMA. Dogecoin remains below the 50-day and 200-day exponential moving averages and the 50-day and 100-day simple moving averages. The relative strength index (RSI) and moving average convergence divergence (MACD) indicators are below the signal lines.

Therefore, Dogecoin prices are likely to remain weak in the short term amid global macroeconomic concerns. A move below the immediate support level of $0.05930 could push the price lower to find support at $0.05575. However, a break above the key hurdle of the 50-day EMA at $0.06615 could pave the way for further upside, invalidating the bearish theory.