The past few days have seen Dogecoin price trapped in a consolidation phase, with attempts to rebound proving futile. Currently trading at $0.1242, the cryptocurrency has experienced a sharp decline of over 42% from its peak this year, indicating a deep bear market.
Interestingly, Dogecoin’s performance this week stands in stark contrast to the success of other meme cryptocurrencies. MOTHER Iggy, associated with Iggy Azelia, witnessed an 18% rise on Wednesday, marking a rebound of more than 75% from its lowest point this week. Similarly, Hoppy, a relatively new meme coin, has surged by a staggering 3,600% from its May low, while Doland Tremp has experienced a 90% jump in the past few days.
This underwhelming performance of Dogecoin can be attributed to the fact that most day traders have shifted their focus towards newer meme coins, which have exhibited strong performance since 2023. Tokens like Bonk, Pepe, and Dogwifhat (WIF) have outperformed mainstream cryptocurrencies such as Bitcoin, Ethereum, and Solana during this period.
Data from trading activities reveals that demand for Dogecoin has been lackluster in recent months, with its 24-hour trading volume consistently remaining below $1 billion. This figure pales in comparison to other smaller meme coins, such as Pepe, which boasts a 24-hour volume surpassing $1 billion.
A similar trend can be observed in the futures market, where Dogecoin’s open interest has been on a downward trajectory. After reaching its peak at over $1.9 billion in March, it has now plummeted to $578 million. Notably, a significant portion of this open interest originates from platforms like Binance, Bybit, and Bitget.
From a technical standpoint, Dogecoin’s price has failed to surpass the 200-day and 50-day Exponential Moving Averages (EMA), a common bearish indication. This situation is likely to worsen when these two moving averages intersect to form a death cross, which historically signals a bearish market.
Furthermore, Dogecoin currently finds itself at a crucial support level, as it represents the lowest swing on May 1st and serves as the neckline of a double-top pattern. This suggests that the coin may continue its downward trajectory, ultimately reaching the psychological threshold of $0.10.