Dogecoin Price: Eyes are on the Key Inflation Data

Dogecoin price has posted significant losses over the past few weeks amid bearish crypto market sentiment. The digital asset has slumped by 18.65% in the month to date and more than 13% in the year to date. Additionally, Dogecoin has shed more than 5% in the past week in the wake of a dull market. The asset’s total market cap has declined over the last day to $8.59 billion, ranking DOGE 8^th after Solana. The total volume of the digital currency traded over the same period has also decreased by more than 18%.

Economic Concerns

Dogecoin price has been in the red for the past few weeks against the backdrop of weak market sentiment, a decline in risk appetite, and macroeconomic concerns. The overall crypto market cap has also been on a downward trajectory, with the crypto market cap down to $1.03 trillion, its lowest level since June. The total crypto market volume has decreased by more than 18% over the last 24 hours.

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

Investors are closely watching the key Consumer Price Index (CPI) data for August set to be published later Wednesday. The Producer Price Index (PPI) data will follow on Thursday. According to members of the central bank, the economic data will guide the Federal Reserve on the next steps in its monetary policy decision. A series of stronger-than-expected economic data released last week renewed worries about further interest rate hikes by the central bank this year.

Investors will be eyeing the US Federal Reserve’s two-day policy meeting scheduled for the 19^th and 20^th of September, hunting for clues about the bank’s interest path. Statistics by the CME FedWatch Tool show that markets are pricing in a 93% chance of a pause in the Fed’s interest rate hike campaign in its September meeting. However, there are wide expectations for another hike in November.

Dogecoin Price Outlook

The daily chart shows that the Dogecoin price has been on a strong bearish trajectory over the past few weeks.  The digital asset has failed to flip the major hurdle at the 50-day EMA. Dogecoin remains below the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages. Its Relative Strength Index (RSI), as well as the Moving Average Convergence Divergence (MACD) indicator, is below the signal line.

Therefore, the Dogecoin price is likely to remain bearish in the immediate term amid global macroeconomic concerns. A move below the immediate support level at $0.05930 might push the price lower to find support at $0.05575. However, a flip above the major hurdle at the 50-day EMA at $0.06615 might pave the way for further gains, invalidating the bearish thesis.

DOGE Price Chart