Dogecoin's value has taken a hit amidst a broader downturn in the cryptocurrency market, spurred by disappointing U.S. GDP growth figures and their potential impact on the Federal Reserve's future actions.

Today, Dogecoin's value dipped as the overall crypto market underwent a significant correction. Specifically, on April 27, DOGE experienced a 4.82% decrease, hovering around $0.15, trailing behind the market's 2.25% decline on the same day. This represents a 38% drop from its recent peak of $0.229 just a month ago.

Let's delve into the key factors contributing to Dogecoin's recent decline.

Diminished prospects for interest rate cuts have dampened demand for Dogecoin. This decline aligns with a broader downtrend in the crypto market that followed the release of the U.S. GDP data on April 25. The reported 1.6% growth in the first quarter of 2024 fell short of the expected 2.5%, with personal consumption expenditures rising only by 0.3% in March. Consequently, expectations for Federal Reserve interest rate cuts in 2024 have dwindled to just 33 basis points, a stark reduction from earlier projections.

The anticipation of sustained high interest rates has pushed the yield on the U.S. 10-year Treasury note to 4.739% on April 24, its highest level in five months. This has diminished the appeal of riskier crypto assets, leading to outflows from five spot Bitcoin exchange-traded funds totaling $217 million on the same day.

Additionally, Dogecoin's open interest has plummeted from $2.21 billion to $865.63 million over the past month, accompanied by a decrease in funding rates to 0.0063% per eight hours. These trends suggest a prevailing bearish sentiment in the market, potentially driven by uncertainty about Dogecoin's future price trajectory or a waning interest in high-leverage trading.

Furthermore, Dogecoin's price retreat appears to be a continuation of a selling pattern initiated by resistance encountered at a descending trendline and the 50-day exponential moving average (50-day EMA). This resistance has repeatedly thwarted DOGE's upward momentum over the past month. Presently, the cryptocurrency is testing support at a multi-week ascending trendline, with a potential rebound signaling a move towards the descending trendline resistance around $0.159 by the end of April.