5% Drop: Will DOGE Face a Deeper Downturn or Escape the Pressure?

• DOGE is holding around the $0.23 mark.
• Trading volume has increased by over 10%.

The downside pressure has intensified with the bears popping up often. It triggers the assets to lose momentum, entering the red zone. Meanwhile, the meme coin market cap has settled at around $74.4 billion, after plunging by over 3.2%. Among the meme coins, the dog-themed Dogecoin (DOGE) has also taken a hit, noting a slip of 5.02%. 

The meme coin opened the day trading at around a high of $0.2502. With the entry of bears, the price has dropped toward a bottom range of $0.2308. If the active downtrend continues, the Dogecoin price might see more losses. As per the CMC data, at the time of writing, DOGE traded within the $0.2309 mark. 

The meme coin’s market cap has stationed at $35 billion. In addition, the daily trading volume of Dogecoin has increased by over 10.65%, touching $3.51 billion. According to the Coinglass data, the market has observed an event of liquidation of $12.32 million worth of DOGE in the last 24 hours. 

Is DOGE Headed for More Losses?

DOGE’s Moving Average Convergence Divergence (MACD) line is above the signal line, with both settled below zero line. The broader market trend is weak. Also, there are early signs of recovery inside a downtrend. Besides, the Chaikin Money Flow (CMF) indicator found at -0.09 implies mild selling pressure in the market. As the value is negative and close to zero, the money is flowing out of the asset, but the bearish pressure is not too strong. 

If the meme coin fails to climb above the $0.2315 mark, the price might fall back to a support range of $0.2302. Losing this level could likely trigger DOGE’s sturdy bearish correction, that which initiates the death cross to unfold. Assuming a recovery of the meme coin, it could move up to reclaim the key resistance at above $0.2320. With the bullish correction, the golden cross may take place and drives the DOGE price to retest the $0.2326 resistance. ​

In addition, the meme coin’s Bull Bear Power (BBP) value of -0.01206 indicates that the bears are dominant. As the value is close to zero, the bearish strength is weak, and the momentum could shift quickly. Notably, DOGE’s daily Relative Strength Index (RSI) positioned at 32.58 suggests a strong bearish momentum. Falling further below 30 hints that it may approach the oversold territory, a zone due for a possible reversal or bounce. 

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