Dogecoin finds itself in a precarious position as the popular meme coin battles to maintain support above $0.13 following a sharp 5% decline. With the Federal Reserve's latest policy decision sending shockwaves through crypto markets, DOGE traders are watching closely to see whether bulls can defend this crucial threshold or if a deeper correction lies ahead.

Dogecoin (DOGE) is facing a critical moment as the cryptocurrency tests a pivotal support level at $0.13, raising questions about whether the meme coin will stage a recovery or succumb to further selling pressure.

The beloved dog-themed cryptocurrency has declined more than 5% over the past 24 hours, bringing it perilously close to breaking below the $0.14 psychological support that has provided a floor for the asset in recent weeks. The selloff comes in the immediate aftermath of the Federal Reserve's FOMC meeting, which introduced fresh volatility across digital asset markets as investors digested the central bank's monetary policy stance.

**Technical Battle Intensifies**

Chart analysts are noting that DOGE has entered a compression zone where technical indicators are showing mixed signals. The current price action suggests that both bulls and bears are positioning for a significant move, with elevated trading volumes indicating heightened market interest despite the recent downturn.

The $0.13 level has emerged as the line in the sand for Dogecoin supporters. A decisive break below this threshold could open the door to further losses, potentially targeting support levels near $0.11 or lower. Conversely, a successful defense of this zone accompanied by a reversal could spark renewed buying interest and propel DOGE back toward the $0.15-$0.16 range.

**Macro Headwinds Persist**

The broader cryptocurrency market remains under pressure following the Federal Reserve's policy update, which reminded investors that interest rate considerations continue to influence risk asset valuations. Dogecoin, as a higher-risk speculative asset, tends to experience amplified volatility during periods of macroeconomic uncertainty.

Despite the challenging short-term outlook, some market participants remain optimistic about Dogecoin's longer-term prospects, citing its strong community support, widespread brand recognition, and potential for integration into payment systems.

**What's Next for DOGE?**

The coming days will be crucial for determining Dogecoin's near-term trajectory. Traders should monitor trading volume, Bitcoin's performance as the market leader, and any shifts in risk sentiment that could impact the broader altcoin sector. For now, the battle at $0.13 represents a pivotal moment that could set the tone for DOGE's performance throughout the remainder of the quarter.