Dogecoin (DOGE) continued its downward trajectory on Monday, marking a third consecutive session of losses as the leading meme cryptocurrency approaches the critical $0.0700 support level. The asset's decline reflects a combination of waning retail demand, bearish positioning in the derivatives market, and cautious sentiment across the broader crypto landscape.
Retail Interest Continues to Fade
As the largest meme coin by market capitalization—still above $12 billion—Dogecoin is showing clear signs of reduced retail participation. The broader cryptocurrency market has adopted a risk-off posture amid ongoing geopolitical tensions involving the United States and Iran over the Strait of Hormuz, which has dampened appetite for speculative assets. Market sentiment remains subdued, with CoinMarketCap's Crypto Fear and Greed Index registering 29, firmly in the "fear" zone.
Derivatives Data Points to Bearish Bias
Derivatives metrics indicate growing caution among traders. According to CoinGlass, Dogecoin's futures open interest (OI) declined by more than 1% over the past 24 hours to approximately $1 billion, signaling a reduction in active leveraged positions. Meanwhile, the funding rate turned negative at -0.0013%, reflecting increased demand for short positions and suggesting that traders are betting on further price declines rather than buying the dip.
Liquidation data further underscores the bearish environment. CoinGlass recorded roughly $2 million in DOGE liquidations over the past day, with $1.8 million coming from long positions. This imbalance indicates that bullish traders have borne the brunt of the sell-off, reinforcing seller dominance in the near term.
Technical Outlook: $0.0700 Support in Focus
On the 4-hour chart, Dogecoin remains in a bearish structure, trading below key technical resistance levels. The asset is beneath its 50-day exponential moving average (EMA) at $0.0824 and the 200-day EMA at $0.1064. A descending trendline has repeatedly capped recovery attempts, with the latest rejection occurring near $0.0745. This persistent resistance leaves the $0.0700 support under increasing pressure. A daily close below this zone could expose DOGE to a deeper decline toward $0.0641, a level last seen in October 2023.
Technical indicators show early signs of slowing downside momentum but remain bearish. The relative strength index (RSI) is hovering near 40, approaching oversold territory, which could reduce selling pressure. The moving average convergence divergence (MACD) remains above its signal line, suggesting a modest recovery attempt is still in play. However, fading positive histogram bars indicate that bullish momentum is weakening and sellers may soon regain full control.
For bulls to regain momentum, DOGE must first reclaim the descending trendline resistance near $0.0745. Beyond that, additional resistance levels are located at $0.0776, the 50-day EMA ($0.0824), and the $0.1000 psychological zone. On the downside, maintaining support at $0.0700 will be critical. A decisive breakdown below this level could accelerate selling pressure and send Dogecoin toward $0.0641, reinforcing the current bearish trend.
For broader context, the recent sell-off in Dogecoin mirrors weakness across the crypto market. Bitcoin Dips Below $63K as Leverage-Driven Selloff Tests Key Support and Dogecoin Tests $0.07 Support as Iran Tensions Fuel Crypto Risk-Off Sentiment highlight the impact of geopolitical risks on investor sentiment. Additionally, Solana Holds $76 Support as ETF Outflows Signal Waning Institutional Demand and Pi Network Extends Losing Streak to Five Days as $0.10 Support Nears illustrate the broader trend of declining demand across digital assets.
This article is for informational purposes only and does not constitute financial advice.
