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The Federal Reserve's early morning rate cut decision triggered intense volatility in the crypto market. Dogecoin was hit hardest, directly breaking below the key level of $0.1407, and briefly falling to a session low of $0.1372. The speed of this decline was so rapid that it caught many off guard—many traders who bought high are now likely silent.
Interestingly, while rate cuts are generally expected to be bullish for liquidity, the market played a "buy the rumor, sell the fact" game. This reflects traders' pessimistic expectations about the policy's effectiveness and a reaffirmation of the crypto market's fragility.
From the market sentiment perspective, this move by Dogecoin is not surprising. As one of the most sentiment-driven assets, any slight change in Federal Reserve policy can cause sharp fluctuations. From the break to the lowest point, the candlestick chart shows a conspicuous large bearish candle, completing a rapid descent within just a few minutes.
However, the turning point appeared at $0.1372. This level exhibited a clear "volume-price divergence"—despite continuous selling pressure, the price did not further decline. Based on years of market watching experience, this phenomenon usually indicates two possibilities: first, the short-sellers' momentum is gradually exhausted; second, large funds are quietly accumulating at the bottom.
Although Dogecoin's sentiment attribute is obvious, the technical support levels after significant drops often become focal points for bulls and bears. The performance at the $0.1372 level may be brewing the next trading signal.