Dogecoin Slumps as Bearish Market Sentiment Persists
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Dogecoin (DOGE) continues to trade on a bearish sentiment into Friday after falling by more than 10% over the past seven days. The bearish pressure on DOGE is sponsored primarily by the doubtful trader bias in the market and the recent spike in smaller meme coins, particularly Shiba Inu and Baby Doge.
At press time, the sixth-largest cryptocurrency trades at the $0.2165 level and is up by 1.3% over the past 24 hours.
The crypto industry has had a very volatile outlook over the past few weeks amid increasing regulatory concerns and clampdown across the world. From the increased clampdown on cryptocurrency mining facilities in China to the recent action by Barclays Bank stopping its UK customers from depositing funds into crypto exchanges, the market is under immense pressure.
Dogecoin received additional blows from a recent report by BrandShield, a cybersecurity firm, which claimed that domains propagating suspected DOGE-related scams spiked by 744% in the first five months this year. From just 25 suspected websites pushing DOGE-related scams in December 2020, the spike correlates with the exponential surge in value for Dogecoin in the early months of 2021.
Despite the bearish bias in Dogecoin and other altcoins, reports show that user engagement remains high.
Key Dogecoin Levels to Watch — July 9
Following a fall below the $0.2000 support yesterday, DOGE appears to be on a healthy rebound towards the critical $0.2500 level. The rebound got triggered by our 3-month long ascending trendline, which coincided with the $0.2000 support yesterday.
That said, the seventh-largest cryptocurrency is currently trading within a wedge, and a breakout is likely over the coming hours or days. Given that the entire crypto market is in recovery mode and DOGE just flipped bullish on our 4-hour MACD indicator, we expect this breakout to take the upper path.
Meanwhile, our resistance levels are $0.2500, $0.3000, and $0.3500, and our support levels are $0.2000, $0.1650, and $0.1400.
Total Market Capitalization: $1.37 trillion
Dogecoin Market Capitalization: $29.5 billion
Dogecoin Dominance: 2.15%
Market Rank: #6
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