The cryptocurrency market had a rough start to the week, with the prices of most coins currently trading in the red zone
The cryptocurrency market has started the week in a negative fashion. The prices of most cryptocurrencies are down by 2% or more, with the total market cap dropping below the $2 trillion mark for the first time in weeks.
Bitcoin has dropped below the $45,000 level again after being unable to mount a challenge to take it past the $50,000 resistance point. BTC is currently down by 6.5% in the past 24 hours. Ether is also one of the biggest losers, down by nearly 9% in 24 hours. ETH is trading above $3,100 and could drop below the $3,000 support level if the current market conditions aren't reversed.
Dogecoin has underperformed in recent months, and its poor run has continued. DOGE has dropped to the tenth position in the market cap rankings after losing more than 9% of its value in the past 24 hours. Polkadot, Solana and XRP have overtaken DOGE by market cap.
Dogecoin price outlook
The DOGE/USD 4-hour chart isn’t looking very promising at the moment. Dogecoin is currently in a bearish situation, and its losses could be extended in the coming hours. The DOGE RSI of 28 shows that the cryptocurrency is highly oversold while its MACD line is dropping lower into the bearish territory.
DOGE/USD 4-hour chart. Source: TradingView
After failing to surpass the major resistance level at $0.2287 earlier today, Dogecoin could drop towards the major support level at $0.2137 in the coming hours. DOGE is currently trading at $0.219 per coin. If the decline continues, DOGE could lose the next support level at $0.197. Unless there is an extended market sell-off, DOGE should steer clear of the sub-$0.18 levels in the coming hours.
However, if DOGE surpasses the resistance level at $0.2244 in the coming hours, it could be set for more gains. The DOGE/USD pair could test the resistance level at $0.2394. Help from the broader cryptocurrency market is required if DOGE is to break past the major resistance level sitting at $0.2458.