Dogecoin (DOGE) Dives 6% as Bitcoin (BTC) Slips Below $17K, Triggering a Wave of Sell-Offs Across the Memecoin Sector

Dogecoin (DOGE) has faced a 6% drop today, hitting an intraday low of $0.3404 on Dec. 19, as Bitcoin's (BTC) slip below the $17000 mark triggered a wave of sell-offs across the memecoin sector.

Dogecoin (DOGE) price faced a 6% drop on Monday, hitting an intraday low of $0.3404 as Bitcoin’s (BTC) slip below the $100,000 mark triggered a wave of sell-offs across the memecoin sector.

The sell-offs were sparked by the Federal Reserve’s 25 basis-point rate cut on Dec. 18, which was followed by a hawkish press conference from Chair Jerome Powell. Powell’s remarks about limited rate cuts in 2025 and an increased 2025 inflation outlook from 2.1% to 2.5% led to Bitcoin’s 2% drop, which rippled through the memecoin market.

Dogecoin, Shiba Inu (SHIB) and Pepe (PEPE) all experienced declines, while the broader crypto market fell by approximately 3.5% during the same period.

The memecoin market saw over $10 billion in value wiped out within 24 hours, as trading volume surged nearly 50%. This highlights the heightened risk-off sentiment among investors, especially in speculative assets like memecoins.

Santiment data shows a downturn in Dogecoin’s social sentiment since Dec. 3, reflecting growing impatience among traders amid the prolonged price consolidation. Negative sentiment could, however, signal a potential reversal if DOGE manages to hold its current support levels.

DOGE’s recent decline follows a bearish divergence between its price and the relative strength index (RSI), a common signal of weakening uptrend momentum. Key resistance zones, including $0.40–$0.42 and $0.47, have further hindered DOGE’s upward movement.

Professional trader Natalie Dormer notes that the pullback has brought DOGE to a critical support level around $0.35, aligning with its 50-day exponential moving average. Dormer remains cautiously optimistic, stating, “Pullbacks and volatility do happen in any uptrend, but our structure still favors upside for $DOGEUSD.”

While the current bearish sentiment poses challenges, holding key support levels could pave the way for a rebound, provided broader market conditions stabilize.