Dogecoin (DOGE) price remains in an extended downward trend, as the broader market risk-off sentiment weighs down on DOGE derivatives. From a technical viewpoint, DOGE risks deeper corrections as bearish momentum remains dominant despite indicators flashing oversold conditions.
Broader market risk-off sentiment weighs down on DOGE
Bearish grip tightens over the broader crypto market with Bitcoin (BTC) struggling for direction below $60,000 and CoinMarketCap’s Fear and Greed Index around 15 on Monday, well into the “Extreme Fear” zone. CoinGlass data shows a steady decline in DOGE futures Open Interest (OI) to $957.74 million on Monday, down from $1.76 billion on May 15, suggesting a positional easing as traders derisk.
The funding rate of around 0.0029% on Monday remains volatile and near zero, suggesting a short-term bullish bias amid a broad mixed consensus among traders.
Will DOGE hold its ground at $0.070?
Dogecoin edges lower toward $0.0700 at press time on Thursday, extending a clear bearish trend for over six weeks. The 50- and 200-day Exponential Moving Averages (EMAs) at $0.0885 and $0.1111, respectively, coupled with a downward trendline near $0.0826, keep Dogecoin rallies contained.
Momentum indicators on the daily chart hint at persistent downside pressure. The Moving Average Convergence Divergence (MACD) is below its signal line in negative territory, reinforcing a bearish bias despite an oversold Relative Strength Index (RSI) near 23.
On the downside, immediate support emerges at $0.0700, with a deeper floor seen at $0.0642, where buyers would need to step in to prevent a more pronounced bearish continuation.
On the topside, initial resistance is at $0.0777, ahead of the former trendline break near $0.0826, as a more distant cap if recovery extends.
(The technical analysis of this story was written with the help of an AI tool.)
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