Key takeaways
- Dogecoin extends its correction on Monday as memecoins post huge losses.
- DOGE price may drop below $0.10 if the downtrend continues.
Memecoins record huge losses
The cryptocurrency market opened a new bearish weekly candle, with Bitcoin (BTC) falling below the $77,000 level on Monday and risk appetite across the digital asset deteriorating.
Meme coins started the week on a weak footing as the broader cryptocurrency market continued to struggle. Dogecoin, Shiba Inu, and Pepe remain vulnerable to further declines after intense selling pressure emerged following last week’s market correction.
DOGE fell in value by 5%, making it the worst performer among the top 10 cryptocurrencies by market cap.
Dogecoin rose briefly last week and retested the important weekly resistance area near $0.119 on Thursday before sellers regained control.
The rejection sparked a new wave of downward pressure, with DOGE falling nearly 6% through Sunday and extending losses further on Monday as the token traded below the $0.106 level.
Technical Outlook: DOGE risks a deeper correction below the key EMAs
The DOGE/USD 4-hour chart is bearish as the leading memecoin fell below key support levels.
If DOGE closes the daily candle below the 100-day Exponential Moving Average (EMA) near $0.106, selling pressure may intensify towards the 50-day EMA near $0.103.
A decisive break below this support area could expose the previous trend line breakout area near $0.090, which now serves as the next major downside target.
Momentum indicators continue to reinforce Dogecoin’s bearish outlook. The Relative Strength Index (RSI) on the 4-hour chart is currently near 41, falling below the neutral 50 level and indicating that the downward momentum is starting to strengthen.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator confirmed a bearish crossover on Saturday, a signal that remains active and continues to support near-term downside risks.
Despite the bearish setup, Dogecoin could still attempt a short-term bounce if buyers successfully defend the 100-day EMA support near $0.106.
Sustained stability above this level may allow DOGE to recover towards the key weekly resistance area around $0.119.
However, broader market sentiment, especially Bitcoin’s trend, is likely to remain the dominant driver of cryptocurrency price movement in the near term.
