Dogecoin (DOGE) extends its bearish moves into Friday after losing almost 15% of its value over the past week, weighed down not just by the wary mood among investors towards cryptocurrencies in general but also over the recent spike in other smaller memecoins, especially Shiba Inu and Baby Doge. At the time of writing, DOGE/USD is trading around $0.20, down by over 6% since the previous session.

Cryptocurrencies have been experiencing quite a bumpy ride over the past several weeks amid rising regulatory concerns around the world. Starting with China’s clampdown on digital currencies and crypto mining to latest reports about how Barclays has stopped letting its UK customers deposit money in crypto exchanges, the market is being weighed down by worries that government and financial authorities are likely to ban them due to their highly speculative nature.

Dogecoin faces additional downward pressure from a recent report by cybersecurity firm BrandShield which reveals how websites pushing suspected scams related to DOGE soared by 744% in the first five months of 2021. From only 25 suspicious domain registrations related to the leading memecoin in December 2020, the surge correlates with the 4,000% rally in the value of Dogecoin through the early months of the year.

Notwithstanding the bearish mood towards Dogecoin and other altcoins across the board, user engagement remains high with the launch of the augmented reality (AR) game Million Doge Disco earlier this month. The game could drive up adoption of DOGE as its awarding NFTs and giving away one million DOGE tokens for free to players.

Key Levels to Watch

The 4-hour chart of DOGE/USD is throwing up somewhat mixed signals, with moving averages indicating a bearish bias while leading technical indicators MACD and Stochastics RSI signaling the interest among bulls. Dogecoin has not only fallen under the pivot point at $0.25 but two support levels at $0.23 and $0.21.

However, the low prices could entice buyers to enter the market and make the most of the current mood, which could support an overturning in the sentiment. However, the confirmation of a bullish mood would require the price to bounce back to above the $0.25 level and test the immediate resistance at $0.29.