Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The daily market structure was strongly bearish.
- Dogecoin was likely to retest the March lows as support in May.
Bitcoin [BTC] faced rejection at $30k almost a month ago, and this dashed the hopes of crypto bulls awaiting another alt season. Dogecoin [DOGE] plunged beneath a short-term range. Its daily timeframe market structure was bearish as well.
Realistic or not, here’s DOGE’s market cap in BTC terms
Dogecoin also suffered rejection from the $0.1 mark in the aftermath of the early April pump. While its defense of the $0.8 support was encouraging four weeks ago, the capitulation of the bulls recently suggested that more losses are likely to follow.
Earnest bears impel further losses on Dogecoin in May
Source: DOGE/USDT on TradingView
The daily timeframe charts showed a strong downtrend in progress for Dogecoin. The RSI was at 34 and has retested the neutral 50 mark as resistance in the past two weeks. This was a sign of significant southward momentum.
The OBV was also in a downtrend as sellers dominated the markets. Given the downtrend for DOGE in April and the fears around Bitcoin’s trajectory, it was likely that DOGE bulls preferred to straddle the fence.
The $0.0729 and $0.08 levels were important support in March and early April but they were breached over the past couple of weeks. The $0.07 and $0.066 levels are the next supports to watch.
A positive reaction from Dogecoin could be dependent on Bitcoin bulls forcing a comeback.
Metrics showed Dogecoin was undervalued but buying could be a risky idea
Source: Santiment
The 90-day MVRV slid sharply into negative territory in mid-April. This showed intense selling pressure and profit-taking but also suggested that the meme coin could be undervalued.
How much are 1, 10, or 100 DOGE worth today?
In May, DOGE posted further losses. This highlighted the lack of conviction from buyers and reinforced the bearish bias seen on the price charts.
The active addresses saw a surge toward the end of April, but these gains began to retrace over the past week. Meanwhile, the dormant circulation saw a huge spike, which was a sign of hefty selling pressure on 9 May.
