Important requirements
- Dogecoin extends its correction on Monday while memecoins record heavy losses.
- DOGE may drop below $0.10 if the bearish trend continues.
Memecoins record huge losses
The cryptocurrency market opened a new weekly candle, with Bitcoin (BTC) falling below the level of $77,000 on Monday with the risk of damage to the digital asset.
Meme Coin started the week on a weak note as the broader cryptocurrency market continued to struggle. Dogecoin, Shiba Inu, and Pepe all remain on the upside after heavy selling was seen following the market correction last week.
DOGE is down 5%, making it the most successful among the top 10 cryptocurrencies in the market.
Dogecoin briefly participated last week and retested the key weekly session near $0.119 on Thursday before the traders pulled back.
This rejection caused a new depression, where DOGE fell by almost 6% until Sunday and added to the losses on Monday when the token traded below the level of $0.106.
Technical outlook: DOGE risks a correction below key EMAs
The DOGE/USD 4-hour chart is bearish as the leading memecoin has broken below key support levels.
If DOGE closes the daily candle below the 100-day Exponential Moving Average (EMA) near $0.106, selling pressure may extend to the 50-day EMA near $0.103.
A definite break below that support level would reveal the area that has already been moving near $0.090, which now serves as the next major target.
Momentum indicators continue to support Dogecoin sentiment. The Relative Strength Index (RSI) on the 4-hour chart is currently sitting near 41, falling below the neutral 50 level and showing that the bearish force is starting to strengthen.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator confirmed bearish consolidation on Saturday, an indicator that remains active and continues to support low risk in the near term.
Despite the bearish setup, Dogecoin may still try to recover temporarily if the buyers successfully protect the 100-day EMA support near $0.106.
A further hold at the same level could allow DOGE to return to weekly resistance at around $0.119.
However, the broader market sentiment, especially the direction of Bitcoin, is likely to remain a major driver of meme coin prices in the near future.
