Dogecoin price falls for a third day as $0.07 support starts to crack

Dogecoin DOGE extended its decline on Monday, marking a third straight day of losses as the leading meme coin edged closer to the critical $0.0700 support level.

Weakening retail demand, bearish derivatives positioning, and cautious investor sentiment across the broader cryptocurrency market continue to pressure DOGE, increasing the likelihood of further downside if key support fails.

Retail interest in Dogecoin continues to fade

Dogecoin, which remains the largest meme cryptocurrency by market capitalization at more than $12 billion (approx. R 205,4 billion), is showing signs of declining participation from retail traders.

The broader crypto market has adopted a risk-off stance amid ongoing geopolitical tensions involving the United States and Iran over the Strait of Hormuz, reducing investors' appetite for speculative assets.

Market sentiment also remains subdued, with CoinMarketCap's Crypto Fear and Greed Index registering 29, placing it firmly within the "fear" zone.

Derivatives data suggests traders are becoming increasingly cautious toward DOGE.

According to CoinGlass, Dogecoin's futures Open Interest (OI) fell by more than 1% over the past 24 hours to approximately $1 billion (approx. R 17,1 billion), indicating fewer active leveraged positions in the market.

At the same time, the funding rate turned negative at -0.0013%, reflecting growing demand for short positions and suggesting traders are betting on additional price declines rather than buying the recent dip.

Liquidation data further highlights the current bearish environment.

CoinGlass recorded approximately $2 million (approx. R 33,4 million) in DOGE liquidations over the past day, with $1,8 million (approx. R 30,5 million) coming from long positions.

The imbalance indicates that bullish traders have borne the brunt of the recent sell-off, reinforcing seller dominance in the short term.

Dogecoin technical outlook: Can $0.0700 hold?

The DOGE/USD 4-hour chart remains bullish, but is still under pressure. 

DOGE continues to trade below several key technical resistance levels, maintaining a bearish market structure.

The meme coin remains beneath its 50-day Exponential Moving Average (EMA) at $0.0824 and the 200-day EMA at $0.1064

In addition, a descending trendline has repeatedly capped recent recovery attempts, with the latest rejection occurring near $0.0745.

This persistent resistance leaves the $0.0700 support level under increasing pressure.

A daily close below this zone could expose DOGE to a deeper decline toward $0.0641, a level last seen in October 2023.

Technical indicators continue to favor the bears despite showing early signs of slowing downside momentum.

The Relative Strength Index (RSI) is hovering near 40, indicating the asset is approaching oversold territory, which could reduce selling momentum.

Meanwhile, the Moving Average Convergence Divergence (MACD) remains above its signal line, suggesting a modest recovery attempt is still in place. 

However, fading positive histogram bars indicate that bullish momentum is weakening and sellers may soon regain full control.

For bulls to regain momentum, DOGE must first reclaim the descending trendline resistance near $0.0745.

Beyond that, additional resistance levels are located at $0.0776, the 50-day EMA ($0.0824), and the $0.1000 psychological zone.

On the downside, maintaining support at $0.0700 will be critical.

A decisive breakdown below this level could accelerate selling pressure and send Dogecoin toward $0.0641, reinforcing the current bearish trend.