Key takeaways
- Dogecoin is down 7% in the last 24 hours, making it the worst performer among the top 10.
- The leading memecoin could record further losses as technical indicators switch bearish.
Memecoins underperform as the broader market dips
The cryptocurrency market is having a poor start to the week as Bitcoin, Ether, and XRP are all in the red. The biggest losers remain the memecoins, with Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), extending the decline from last week.
Dogecoin has lost 7% of its value in the last 24 hours, making it the worst performer among the top 10 leading cryptocurrencies by market cap. It is currently trading below the crucial moving averages, aiming for the immediate support to enable it rally higher.
The decline in Dogecoin aligns with the broader market pullback, as Bitcoin (BTC) drops below $93,000 on Monday after a leverage-driven rally failed to hold momentum.
DOGE could dip lower if the selling pressure persists
The DOGE/USD 4-Hour chart is bearish and efficient, thanks to Dogecoin losing 7% of its value in the last 24 hours.
At press time, DOGE is trading at $0.1275, below the 20-day Exponential Moving Average at $0.1375 and the 50-day EMA at $0.1417, maintaining a bearish setup as both averages slope lower.
The Moving Average Convergence Divergence (MACD) histogram on the 4-hour chart has slipped into negative territory and is expanding, suggesting strengthening bearish momentum.
The Relative Strength Index (RSI) at 37 reflects an increase in selling pressure and is getting closer to the oversold region.
If the bulls regain control, DOGE could rally towards the $0.14 level in the near term. However, failure to improve the market sentiment could see DOGE slip below the December 31 low at $0.1161. An extended bearish run could allow the bears to target the October 10 low at $0.09500.
