The broader crypto market remains under the bearish radar, with the majority of the digital assets charted in red. The assets like Bitcoin (BTC) and Ethereum (ETH) are stuck at their former lows. Meanwhile, the meme coin market cap has slipped by 4% to $32.2 billion. Besides, the dog-themed token, Dogecoin (DOGE), has plunged by 3.3%.
The meme coin opened the day, trading at a high range of $0.0923. It has faced a series of ups and downs, and gradually the bears took control, sending the price to a low level of $0.08872. Currently, DOGE is trading at $0.08912, with its trading volume up by 13.20% to $1.36 billion. And the DOGE market has seen a liquidation of $6.24 million.
With the active bearish sentiment, the DOGE might retrace toward the key support zone at $0.088. If the correction on the downside gains more power, the bears would initiate the death cross to unfold and drive the price even lower. Assuming a reversal for the DOGE price, it may climb and reclaim the resistance at the $0.090 mark. A breakout could trigger the bulls to push the golden cross out, taking the meme coin price up toward its recent highs.
Bearish Momentum Builds for DOGE Amid Weak Setup
The Moving Average Convergence Divergence (MACD) and the signal lines of DOGE are settled below the zero line, which indicates its bearish momentum. The recent price action has remained weaker than the broader trend average. A move back above zero would weaken the bears and potentially shift the trend.
Likewise, the Chaikin Money Flow (CMF) indicator found at -0.18 suggests strong selling pressure in the DOGE market, with clear capital outflows from the asset. Notably, the distribution is dominating, and the sellers are more lively than the buyers. If it remains deeply negative, the downside pressure may continue.
DOGE’s daily Relative Strength Index is stationed at 39.54, implying weak sentiment with a bearish bias, as it is below the neutral level. Also, the selling pressure is exceeding the buying pressure, but not in extreme bearish conditions. With the RSI dropping closer to 30, it may strengthen the bearish momentum.
Furthermore, the Bull Bear Power (BBP) reading of -0.00314 signals very weak bearish strength. As it is extremely close to zero, it displays a near-balanced market, where momentum is limited, and neither side has strong control. If it moves further below the zero line, it likely strengthens the ongoing downtrend.
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