Dogecoin plunges 25% in a week as bearish pressure grips crypto

Dogecoin has fallen more than 25% over the past month and has dropped to around $0.083 after breaking below key support levels as traders continue reducing exposure across derivatives markets.

According to CoinGecko price data, Dogecoin traded near $0.083 on June 5 after losing 4.48% over the previous 24 hours. 

The meme coin moved between an intraday high of $0.091 and a low near $0.083, leaving price action near the bottom of its daily range. 

Weekly losses have reached 12.98%, while the token is down 54.78% over the past year.

The meme coin moved between an intraday high of $0.091 and a low of $0.086, leaving it near the bottom of its daily range.

Weekly losses have reached 12.98%, while the token is down 54.78% over the past year.

Pressure on DOGE has intensified since it fell below the $0.10 level, a zone that previously acted as support. Market data shows the token is now trading beneath the $0.10 to $0.12 range that buyers defended earlier in May.

At current levels, Dogecoin's market capitalization stands at $13.3 billion, keeping it ranked as the 11th largest cryptocurrency by market value.

Circulating supply has reached 154.52 billion DOGE, closely tracking total supply as new coins continue to enter circulation through mining rewards.

Dogecoin approaches key support as momentum weakens

Technical indicators show Dogecoin sitting at an important decision point.

Crypto analyst Ali Charts had identified $0.0883 as a key support level and projected potential recovery targets at $0.1019 and $0.1156 if buyers defended that area.

DOGE has since fallen below the analyst's support level and was trading near $0.083 at press time.

"As long as this support holds, I think a recovery toward $0.1019 and $0.1156 remains likely," Ali Charts wrote.

The analyst also warned that a break below $0.0883 could expose the next major supply zone near $0.067. 

With DOGE now trading below that support level, traders are watching whether sellers can extend the decline toward the analyst's downside target.

Daily chart data shows DOGE extending its downtrend after losing the $0.10 level.

Price has now fallen to around $0.083, placing the token below the $0.0883 support area highlighted by Ali Charts and leaving former support zones unclaimed.

The token recently dropped toward $0.083 before attracting buyers, though the rebound failed to reclaim former support zones.

DOGE/USDT 1-day price chart. Source: TradingView.

Momentum indicators remain under pressure. The daily Relative Strength Index has fallen to around 21.5, placing DOGE deep in oversold territory. 

While such readings can precede short-term relief rallies, the daily MACD remains below its signal line and continues to print negative histogram bars, indicating bearish momentum remains intact.

Short-term indicators tell a similar story.

On the four-hour chart, the Stochastic RSI has dropped into oversold territory with readings near 2 and 17, suggesting selling pressure has become stretched.

DOGE/USDT 4-H price chart. Source: TradingView.

At the same time, the Chaikin Money Flow indicator remains below zero, showing capital continues to leave the asset despite occasional buying attempts.

Ali Charts had previously highlighted support near $0.096 on June 1 after a TD Sequential buy signal appeared. 

DOGE has since broken below that level and continued lower, undermining the earlier bullish setup that pointed to a move toward $0.110.

Derivatives traders cut exposure as crypto markets retreat

Derivatives data from CoinGlass shows traders have become increasingly defensive as prices moved lower.

Futures trading volume fell 7.89% to $2.1 billion, while open interest dropped 4.85% to $1 billion. 

When open interest falls during a selloff, it can indicate liquidations or traders closing leveraged positions as confidence weakens.

Simultaneously, options volume jumped 171.59%, while options open interest climbed 42.23% to $600,650, suggesting some participants are positioning for larger price swings ahead.

Market weakness in Dogecoin has developed alongside a broader decline across digital assets. 

Bitcoin has extended its recent slide while institutional investors continue withdrawing capital from spot Bitcoin exchange-traded funds.

Traders are now watching whether DOGE can regain the lost $0.0883 support area after falling to roughly $0.083.

According to Ali, holding this support could keep recovery targets near $0.1019 and $0.1156 in play.

A break below the channel floor, however, could expose the next major supply zone around $0.067.