The Unraveling of a Meme Coin’s Momentum

Dogecoin (DOGE), once the darling of the cryptocurrency world, finds itself at a critical juncture

Dogecoin (CRYPTO: DOGE) price has been showing signs of weakness, with traders remaining bearish on the coin.

What Happened: Dogecoin has encountered a series of breakdowns in the short-term, starting the year at $0.17 and now trading below the $0.10 mark.

The lack of sustained buying pressure above the $0.10 level, a psychologically significant figure, indicates that the sellers have the upper hand. A fresh rally attempt, recently stalling at $0.142, has been met with sellers.

The recent period of calm in the market could be setting the stage for another move on the daily chart, and the prevailing bearish trend suggests that the next move is likely to be lower.

Relative Strength Index (RSI) Scan: The RSI, an indicator of oversold or overbought conditions in a stock or ETF, stands at 33.70 for Dogecoin. Values above 70 indicate overbought territory, while levels below 30 indicate oversold conditions.

MagLev Signals Bearish Trend: According to ChartMogul, the MACD crossed below the signal line about two weeks ago, indicating a potential sell signal.

The Bottom Line: The cryptocurrency is showing weakness with minor losses on the day. A major psychological level to watch is $0.10, below which there could be more selling pressure.

If buyers try to regroup and intercept the move, we may see a brief retracement.

"The lack of bullish momentum, together with the prevailing bearish sentiment, suggests that the bears are likely to continue to exert their influence in the short term," said an analyst.

"The recent weekly low may pose a temporary threat to the bears, but if they manage to break below it, we could see another expansion move towards the $0.10 level on the lower timeframe for support."

If the bulls attempt to intercept the move, we may see a brief retracement before the bearish trend resumes. However, the current market dynamics suggest that the bears are likely to prevail.

Dogecoin Price Action: Dogecoin shares are down 0.38% in the past week and have declined by 12.11% over the past month, according to Benzinga Pro.

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