The cryptocurrency market has been underperforming in recent weeks, and the market cap has now dropped below the $2 trillion mark again.
The broader crypto market has been underperforming over the past two months. Bitcoin and Ether set new all-time highs of $69k and $4,800 in November, with the total market cap reaching $3 trillion during that period.
However, the market has been in a bearish trend since then, and Bitcoin is trading around the $42k level while Ether continues to struggle below the $3,500 resistance level. Dogecoin has also experienced massive losses over the past few months.
The leading meme coin is no longer one of the top cryptocurrencies by market cap. At press time, DOGE is trading at $0.1643, down by more than 3% over the past 24 hours. DOGE could record further losses over the coming hours if the current market momentum remains the same.
There is no major catalyst behind this current bearish performance. DOGE, like the other major cryptocurrencies, has been performing poorly over the past few weeks.
Key levels to watch
The DOGE/USD 4-hour chart is very bearish, thanks to the cryptocurrency’s performance over the past 24 hours. The technical indicators show that DOGE is currently underperforming and could dip lower before the end of the week.
DOGE is trading below its 50-day simple moving average price of $0.19. Furthermore, the 14-day relative strength index of 40 shows that DOGE could soon enter the oversold region if the market momentum is maintained.
The MACD line has been below the neutral zone since the start of the week. If the bears remain in control, DOGE could drop below the $0.12 resistance level over the coming hours. In the event of an extended bearish performance, DOGE could drop below the $0.10 level and trade around $0.09 for the first time in months.