According to U.Today, Dogecoin (DOGE), the most prominent meme cryptocurrency, has developed a head and shoulders pattern, as reported by cryptocurrency trader Josh Olszewicz. This popular reversal pattern is frequently used by traders to predict the start of a downtrend. The reversal point on the left side of the Olszewicz chart is known as "the left shoulder." The peak is known as the "head" of the pattern, while the right shoulder signifies another reversal point which, together with the left reversal point, forms the neckline. Dogecoin price could potentially break the neckline, thus creating a lower low. If this happens, the bearish pattern would be considered complete.

This price pattern essentially indicates a loss of bullish momentum when the price fails to reach a higher high. At the time of writing, Dogecoin is trading at $0.15 on major spot exchanges, down more than 4.2% in the last 24 hours, reflecting the performance of the broader cryptocurrency market.

In other news, Bitcoin, the leading cryptocurrency, briefly fell below the $63,000 level before recovering to $63,622. Analysis firm Fitch suggests that a potential Federal Reserve rate cut may be unlikely this year, given recent economic data indicating slowing GDP growth and rising inflation in the US. The firm He stated that if growth continues to slow slowly but inflation rises sharply in the wrong direction, the prospect of a Fed interest rate cut in 2024 is increasingly unlikely. Futures traders are now pricing in zero rate cuts by 2024, a significant change from previous expectations of three rate cuts this year. This hardline shift could negatively impact cryptocurrencies, particularly meme coins.