Dogecoin (DOGE), known as Memecoin and one of Elon Musk’s favorite cryptocurrencies, has proven to be in a strong downtrend, losing almost 20% of its value last week, down more than 7% since Friday.
At the time of writing this, DOGE/USD is trading around $0.17.
While the bearish trend across many major cryptocurrencies is one of the main reasons for the current decline, Dogecoin is also fighting the waning interest and trust in it among investors.
Despite the recent listing of this memecoin on leading crypto exchanges, the lack of an increase caused it to break the confidence of its investors.
Due to this insecurity, it is observed that DOGE investors show more interest in these cryptocurrencies by turning to other altcoins such as Cardano (ADA), Polkadot (DOT) and Solana (SOL).
In the emerging NFTs and DeFi space, it would be wrong to say that the leading memecoin has that much power for now.
In addition, it faces stiff competition from Shiba Inu (SHIB), another emerging memecoin that promises more trust.
Meanwhile, Dogecoin might find some support from the news about DOGE being listed on tZERO, a crypto exchange. One of the main reasons was that after adding memecoin, he increased his crypto purchases to 10 cryptocurrencies, a move that could increase interest in DOGE trading.
Dogecoin technical analysis
On the 4-hour chart of DOGE/USD, the moving averages and the MACD indicator are showing a strong bearish trend. However, the momentum indicator also offers the possibility that there is some buying bias.
As current market action, it continues to trade below the key $0.20 level and failed to hold and break below the pivot point at $0.21 and immediate support at $0.19.
In case the selling pressures increase further, the second support level is found around $0.16.