Dogecoin (DOGE) extended its decline on Monday, marking a third consecutive day of losses as the leading meme coin edged closer to the critical $0.0700 support level. Weakening retail demand, bearish derivatives positioning, and cautious investor sentiment across the broader cryptocurrency market continue to pressure DOGE, increasing the likelihood of further downside if key support fails.
Retail interest in Dogecoin continues to fade. Despite remaining the largest meme cryptocurrency by market capitalization at over $12 billion, DOGE is showing clear signs of declining participation from retail traders. The broader crypto market has adopted a risk-off stance amid ongoing geopolitical tensions involving the United States and Iran over the Strait of Hormuz, reducing investors' appetite for speculative assets.
Market sentiment remains subdued, with CoinMarketCap's Crypto Fear and Greed Index registering 29—firmly within the "fear" zone. Derivatives data further reflects growing caution: according to CoinGlass, Dogecoin's futures Open Interest (OI) dropped by more than 1% over the past 24 hours to approximately $1 billion, signaling fewer active leveraged positions. Simultaneously, the funding rate turned negative at -0.0013%, indicating rising demand for short positions and suggesting traders are betting on additional price declines rather than buying the dip.
Liquidation data underscores the current bearish environment. CoinGlass reported roughly $2 million in DOGE liquidations over the past day, with $1.8 million stemming from long positions. This imbalance shows that bullish traders have borne the brunt of the recent sell-off, reinforcing short-term seller dominance.
DOGE’s 4-hour chart remains technically pressured despite modest bullish signals. The token trades below several key resistance levels, maintaining a bearish market structure. It remains 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 near $0.0745 intensifying pressure on the $0.0700 support.
A daily close below $0.0700 could expose DOGE to a deeper decline toward $0.0641—a level last seen in October 2023. Technical indicators still favor bears, though they show early signs of slowing downside momentum. The Relative Strength Index (RSI) hovers near 40, approaching oversold territory, which may temper selling pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) remains above its signal line, hinting at a modest recovery attempt. However, fading positive histogram bars suggest bullish momentum is waning, 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 lie at $0.0776, the 50-day EMA ($0.0824), and the psychological $0.1000 mark. On the downside, holding $0.0700 is critical; a decisive breakdown could accelerate selling and confirm the continuation of the current bearish trend.
