The cryptocurrency market has been underperforming since the start of the week, but memecoins are usually hit the hardest during bearish moments.
DOGE, the native coin of the Dogecoin ecosystem, is one of the worst performers among the top 10 cryptocurrencies by market cap.
The memecoin is down by nearly 5% in the last 24 hours and has dropped below a key support level.
With the market conditions still bearish and a declining retail interest, the technical outlook for Dogecoin indicates further selling pressure, with the $0.10 psychological level now the target.
Retail interest in Dogecoin continues to decline
The primary catalyst behind DOGE’s performance in recent weeks is the declining retail interest.
Santiment data shows that whales with 100 million to 1 billion DOGE hold 34.77 billion tokens, down from 36.14 billion on December 1.
The data added that those investors sold over 1 billion DOGE on December 10, with the figure remaining largely stable since then.
The total supply of DOGE in profit now stands at 50.70%, down from the 53.95% recorded on December 3.
Looking at the derivatives data from CoinGlass, Dogecoin has been losing strength as the broader crypto market braces for the US Consumer Price Index (CPI) today and the Bank of Japan (BOJ)’s rate decision tomorrow.
The short positions in DOGE derivatives have increased to 53.91%, from 52.59% on Wednesday.
The increase in short positions shows more traders predict a decline in DOGE’s price in the near term, evidenced by the wipeout of over $5 million in DOGE long positions in the last 24 hours.
Will DOGE retest the $0.10 psychological level?
DOGE has lost 9% of its value in the last seven days and is currently trading around the $0.125 level.
The DOGE/USD 4-hour chart remains bearish and inefficient thanks to the recent poor performance.
The drop below the $0.13 level meant that the leading memecoin has dropped to its lowest daily close since October 17, 2024, amid the third consecutive losing week.
If the bearish trend continues and DOGE closes its daily candle below the $0.1231 support, it could extend its decline towards the $0.100 psychological level over the next few hours or days.
The technical indicators support a bearish performance for Dogecoin.
The Moving Average Convergence Divergence (MACD) indicator on the 4-hour timeframe extends to the downside after crossing below its signal line over the weekend.
The Relative Strength Index (RSI) is at 31 with a declining slope heading toward the oversold boundary, indicating intense bearish pressure.
On the flip side, if the bulls regain control and DOGE closes its daily candle above the $0.1231 level, it could rally towards the 50-day Exponential Moving Average (EMA) at $0.1556 in the near term.
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