Dog-themed cryptocurrency Dogecoin (CRYPTO: DOGE) fell on Friday as crypto traders digested mixed macroeconomic data, reversing what had been a bullish trend for crypto markets in recent weeks.

This accelerated a bout of profit-taking that began earlier in the week as traders booked some of the stellar gains in the market.

What Happened: Dogecoin fell nearly 8% in the 24 hours leading to Friday evening, in a move that signaled a risk-off shift among crypto traders. The coin had fallen as low as $0.170 before recovering slightly.

The drop in Dogecoin comes as trading volume soared 150% in the past 24 hours, according to CoinMarketCap data. At press time, 11.53 billion Dogecoin, or $2,028,469,753, were traded in 24 hours.

The increase in trading volume could indicate institutional participation rather than retail fear, as traders are seeking to capitalize on Dogecoin's volatility.

Dogecoin is now trading at $0.176, down 14% over the past seven days. The coin is currently facing resistance at $0.190, while support is emerging between $0.169 and $0.170.

Why It's Important: The past week has seen a shift in market sentiment, with traders becoming more cautious amid concerns over the U.S. economic outlook and the potential for a hawkish pivot by the Federal Reserve.

This has led to a rise in volatility in both the stock and crypto markets, with major indices such as the S&P 500 and Dow Jones Industrial Average experiencing significant fluctuations.

As the market remains volatile, traders are closely monitoring key technical levels and economic indicators to anticipate further shifts in market sentiment.

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