Key takeaways
DOGE has lost its position as the 8th-largest crypto by market cap after Tron’s TRX overtook it.
The coin could drop to the $0.15 level as the broader sentiment remains bearish.
TRX flips Dogecoin
Tron’s TRX has been the best performer among the top 10 cryptocurrencies by market cap this week. After an excellent start to the week, TRX has now flipped Dogecoin to become the 8th-largest cryptocurrency by market cap.
At press time, Dogecoin’s market cap stands at $25.5 billion, while TRX has climbed to $26 billion. With Dogecoin trading around $0.17 per coin, it could face further selling pressure in the short term before any substantial rally.
The selling pressure comes amid the bearish conditions in the broader financial markets caused by the ongoing conflict in the Middle East. Dogecoin, Shiba Inu, and other major memecoins have been underperforming as investors are pushing funds into risk-averse assets.
Despite the current bearish conditions, analysts remain optimistic about Dogecoin’s medium to long-term potential. DOGE is still 76% down from the all-time high price of $0.7376, signalling room for growth over the coming weeks and months.
DOGE could test the $0.50 psychological level before a rally
At press time, the price of Dogecoin stands at $0.1716, up 1% in the last 24 hours. While analysts expect a rally in the medium to long term, DOGE could underperform in the short term.
The DOGE 4H chart shows that the cryptocurrency is currently bearish. The RSI of 48, down from 66 earlier this month, shows that DOGE is currently facing selling pressure. If that continues, the RSI could enter the oversold region.
The MACD has also slipped into the negative zone, indicating that the buyers have relinquished control. The negative performance could see DOGE test the support level at $0.163 before breaking down to the $0.15 psychological level.
However, if the bulls regain control of the market, DOGE could test the external liquidity level around $0.20 in the coming days or weeks.
