Key Points
- Dogecoin has declined by 7% in the last 24 hours, making it the worst performer among the top ten cryptocurrencies.
- The leading memecoin may face further losses as technical indicators shift towards bearish territory.
Memecoins Underperform Amidst Broader Market Decline
The cryptocurrency market is starting the week on a down note, with Bitcoin, Ether, and XRP all seeing losses. Memecoins are the biggest losers, as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) extend last week’s downward trend.
Specifically, Dogecoin has experienced a 7% drop in value over the past 24 hours, positioning it as the worst performer among the top ten cryptocurrencies by market capitalization. It is currently trading below crucial moving averages, indicating immediate support levels may be needed for a possible rebound.
This decline for Dogecoin comes amid a broader market retreat as Bitcoin (BTC) fell below $93,000 on Monday following a leveraged rally that could not maintain its momentum.
DOGE May Continue to Fall if Selling Pressure Persists
The DOGE/USD 4-hour chart shows a clear bearish trend, largely attributed to the 7% value loss over the past day.
As of now, DOGE is trading at $0.1275, below the 20-day exponential moving average at $0.1375 and the 50-day moving average at $0.1417, maintaining a bearish setup as both averages trend downward.
The MACD histogram on the 4-hour chart has entered negative territory and continues to extend, suggesting that bearish momentum is strengthening.
The Relative Strength Index (RSI) at 37 signals an increase in selling pressure and approaches oversold territory.
If bulls regain control, DOGE might rise towards the $0.14 mark in the short term. However, failure to improve market sentiment could see DOGE drop below the December 31 low of $0.1161. A prolonged bearish phase could lead sellers to target the October 10 low of $0.09500.
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