Dogecoin [DOGE] Bears’ Fresh Salvo Could Trigger Damaging Sell-off

Even Elon Musk has not been able to save Dogecoin [DOGE] from the market-wide pullback that has resulted in the collective crypto market cap dropping to $2.19 trillion. It had previously gained a huge fancy among investors which led the rally above $0.7 in the first week of May.

The Tesla Founder SNL appearance and DOGE advocacy did go too well as the Shiba-Inu-themed meme coin dropped drastically soon after. It was replaced by Cardano [ADA] as the fourth largest crypto-asset by market cap on the leaderboard.

After a depreciating by more than 5% over the last 24-hours, Dogecoin [DOGE] was priced at $0.502. At the time of writing, the digital asset registered a market cap of $65.18 billion and a 24-hour trading volume of $10.04 billion.

Dogecoin [DOGE] Daily Price Chart:

Dogecoin [DOGE] formed a lower high after retracing its steps from the recently established ATH. The uptrend was cut-short as bearish pressure intensified. The decreasing volume failed to back the price of the meme coin which explained the current downtrend.

The moving averages, 50 DMA [Pink] and the 100 DMA [Blue], however remain unfazed by the latest price action and continued to provide support as they hovered at $0.29 and $0.17 respectively.

DOGE Technicals Look Bleak

Amidst the market rout, the technicals are deep into the bearish hole. The red closing bars of Awesome Oscillator, for instance, indicated a weak bearish momentum. The MACD also showed no signs of reversal in near future after sustaining a bearish crossover last week. This was indicative of a weak buying demand in the DOGE market.

The RSI, on the other hand, still held its fort a little above the 50-median depicting a phase of balance.

If the sell-off further intensifies, Dogecoin [DOGE] its first levels of support at $0.45. Upon breaching this level, the token could suffer a damaging fall to $0.25. Its resistance level was found to be at $0.69.

Chayanika Deka: Chayanika is a full-time journalist at TronWeekly with over two years of experience. A graduate in Political Science and Journalism, she focuses on the political and financial impact of cryptocurrency and blockchain developments.