The cryptocurrency market has started the week on a bearish note, impacting major coins such as Bitcoin (BTC), Ethereum (ETH), and XRP. However, the biggest losers appear to be memecoins, with Dogecoin (DOGE) standing out as one of the hardest-hit assets.
Dogecoin Sinks Amid Market Pullback
Over the last 24 hours, Dogecoin has suffered a significant 7% drop in value, making it the worst-performing cryptocurrency among the top 10 by market capitalization. Currently trading at $0.1275, DOGE has slipped below key moving averages, signaling bearish momentum. This downturn reflects the broader market retreat, where Bitcoin has also dropped significantly.
On the DOGE/USD 4-hour chart, the Exponential Moving Averages (EMAs) confirm a bearish setup. The 20-day EMA stands at $0.1375, while the 50-day EMA hovers at $0.1417, with both averages sloping downwards. Additionally, the MACD histogram is firmly in the negative and expanding, further signaling accelerating selling pressure.
Technical Indicators: Signs of Further Decline?
Market indicators suggest that Dogecoin faces continued pressure. The Relative Strength Index (RSI) currently sits at 37, indicating increasing sell-offs and nearing oversold levels. If sellers maintain control, DOGE may test key support levels, including the December 31 low of $0.1161 or even the October 10 low of $0.095.
Conversely, a bullish reversal could see DOGE retest the $0.14 threshold in the near term. However, such a rally would require broader market support and improved investor sentiment.
Stay Informed with Market Tools
For crypto enthusiasts wanting to monitor price movements and improve their trading strategies, platforms like eToro can be a valuable resource. Offering tools to analyze market trends and copy top-performing traders, eToro provides advanced solutions for both beginner and seasoned investors. Disclaimer: Cryptocurrencies are volatile, and trading involves significant risk. Ensure you understand the risks before investing.
What Next for Dogecoin?
While Dogecoin remains a popular asset in the crypto space, its short-term outlook is clouded by bearish momentum. Traders should keep an eye on key technical levels while considering market sentiment indicators. Whether you’re a hodler or an active trader, staying informed will be crucial during these volatile times.
