Dogecoin is trading at $0.166, almost 2% lower than when it started the day. Although the asset had a slight price improvement earlier, Sunday is shaping up for another bearish close.
The biggest memecoin was plagued by massive declines that saw prices retrace to critical supports. The latest rounds of declines started on Thursday with a more than 2% drop following a failed attempt to keep prices above $0.20.
DOGE’s downhill movement slowly worsened as it lost more value. It dipped from $0.19 to $0.17 on Friday and closed with losses exceeding 5%. The memecoin continued its descent during the previous intraday session, losing almost 6% and retracing to $0.16.
The cryptocurrency grapples with significant selling pressure around the vital level as indicators flipped bearish.
Memecoins See Tremendous Selling
Dogecoin is not the only memecoin grappling with significant selling pressure. The market cap of such has significantly declined over the last three months. Many are far from their previous highs and struggle to hold on to key levels.
PEPE surged to a high of $0.0000283 on Dec. 9, following a 265% surge in thirty days. However, the uptick ended following this milestone, causing the asset to nosedive. It has been in freefall, dipping below November’s during the first half of March.
Although the cryptocurrency recovered, it is 75% lower than its December high. It broke above its fourteen-day high on Wednesday, surging above $0.0000092, but hit a brick wall afterward.
WIF is seeing a similar event play out. It may be one of the worst-hit tokens by the ongoing bearish state. It surged to a high of $4.79 on Nov. 13 but has since been on a downtrend. It broke below its September low and trades 68% lower. However, it lost a whopping 90% between November and March.
Solana, the center for meme coin launches, has since plummeted in price and revenue. Revenues on the chain have since significantly declined as traders and developers are less active. Many investors claim that the memecoin craze is gradually ending. Nonetheless, developers are launching fewer of such assets as many receive less attention and liquidity.
The memecoin economy or market is one of the worst hit by the ongoing bearish state of the crypto market. Dogecoin experienced tremendous increases during the previous year’s fourth quarter, gaining a whopping 364% and peaking at $0.48. The hike sparked speculations of the asset hitting $1. However, the prediction hit a brick wall shortly after it peaked.
The downtrend continued, sending the largest memecoin to new lows. It trades 66% lower than its previous high and shows no signs of recovery.
Fundamentals Remain Grim
It is worth noting that the crypto market surged as news of Donald Trump becoming the US President spread. The celebrations started days before the elections as it was clear to many who would be victorious.
News of possible cryptocurrency reserves continued to spark hopes of resuming the uptrend. However, traders took profit in the months following the polls. Failed expectations of a rate cut in January worsened the downtrend. February rolled in with news of tariffs on several products, igniting the start of the trade wars.
The US economy has since been plagued by fears of recessions following the continued policies that many fear will most affect the nation. Efforts to quell the bearish predictions failed as the announcement of further tariffs struck more fear.
POTUS recently announced 25% duties on autos and other commodities. The new tax will take effect in April. The most recent price declines may be in response to the impending situation.
It is also worth noting that some analysts ruled out the possibility of the market resuming its uptrend anytime soon. CryptoQuant’s CEO announced the start of the bear market a few days ago, increasing fears of further declines. Investors are closely watching several assets and wondering when they will bottom out.
Dogecoin One-Week Chart Hints Slip Below $0.14
A look at the one-week chart indicates that the asset may see further decline and return to 2024 lows. The image below shows several red candles depicting the memecoin’s status since December. It registered two green candles over the last two weeks. It is printing a red candle, indicating that the bears are in control.
A closer look at the figure above shows that the last time DOGE saw such a trend, it dropped by over 50%. Previous price movements suggest that the coin may see a repeat of this price movement if trading conditions remain the same.
The indicators on the chart are negative. A few weeks ago, the moving average convergence divergence displayed a bearish interception. Following this event, its 12-day EMA and 26-day EMA continued downwards as trading conditions worsened.
Nonetheless, the Fibonacci retracement levels point to price marks to watch. The asset trades below the 78% fib level at the time of writing. The metric hints at a possible price decline below $0.10, supporting earlier speculations of another 50%.
Nonetheless, the relative strength index trends on a straight line, indicating that the bulls are trying to resume buying or the bears are exhausted.
Dogecoin Remains Bearish in the Short-term
Dogecoin is on the verge of another negative event on the one-day chart. The 12-day EMA is seeing downhill movement and edges closer to intercepting the 26-day EMA. If the selloffs continue, the ongoing bearish convergence may be completed in the next 48 hours.
RSI continues its downward movement as selling pressure increases. Currently down by almost 4%, indicators hints at further declines. It is important to note that the asset is trading at a critical mark. A closer look at previous price movements suggests that a slip below the $0.166 support may guarantee a dip below $0.16.
