Meme coins remain under pressure as Dogecoin extends losses

Key takeaways

Dogecoin extends its correction on Monday as memecoins file large losses.
DOGE might drop beneath $0.10 if the bearish development persists. 

Memecoins file large losses

The cryptocurrency market opened the brand new weekly candle bearish, with Bitcoin (BTC) slipping beneath the $77,000 degree on Monday and threat urge for food deteriorating throughout digital belongings.

Meme cash began the week on a weak footing because the broader cryptocurrency market continued to battle. Dogecoin, Shiba Inu, and Pepe all stay susceptible to additional draw back after heavy promoting strain emerged following final week’s market correction.

DOGE is down by 5%, making it the worst performer among the many high 10 cryptocurrencies by market cap. 

Dogecoin briefly rallied final week and retested the vital weekly resistance zone close to $0.119 on Thursday earlier than sellers regained management.

The rejection triggered a recent wave of draw back strain, with DOGE falling almost 6% by Sunday and lengthening losses additional on Monday because the token traded beneath the $0.106 degree.

Technical outlook: DOGE dangers a deeper correction beneath key EMAs

The DOGE/USD 4-hour chart is bearish because the main memecoin has dropped beneath main help ranges. 

If DOGE closes the day by day candle beneath the 100-day Exponential Shifting Common (EMA) close to $0.106, promoting strain might intensify towards the 50-day EMA round $0.103.

A decisive breakdown beneath that help space could expose the earlier trendline breakout area close to $0.090, which now acts as the subsequent main draw back goal.

Momentum indicators proceed to bolster the bearish outlook for Dogecoin. The Relative Energy Index (RSI) on the 4-hour chart at present sits close to 41, slipping beneath the impartial 50 threshold and signaling that bearish momentum is starting to strengthen.

In the meantime, the Shifting Common Convergence Divergence (MACD) indicator confirmed a bearish crossover on Saturday, a sign that is still energetic and continues to help draw back threat within the close to time period.

Regardless of the bearish setup, Dogecoin might nonetheless try a short-term rebound if consumers efficiently defend the 100-day EMA help close to $0.106.

A sustained maintain above that degree could enable DOGE to recuperate towards the important thing weekly resistance zone round $0.119.

Nonetheless, broader market sentiment, notably Bitcoin’s course, is more likely to stay the dominant driver for meme coin value motion within the close to time period.