Popular memecoin Dogecoin is being dragged down on Tuesday as the wider crypto sector continues to experience panic selling in the aftermath of the market leader Bitcoin falling under the key level of $30,000. At the time of writing, DOGE/USD is trading at around $0.166.

Despite the bearish mood afflicting the digital currencies, Dogecoin remains one of the biggest gainers of 2021, after having strengthened by over 2,000% since January 2021 and holding on among the top 10 cryptocurrencies in this regard. Mainly powered by the bull run in the crypto market and promotions by influencers including Tesla CEO Elon Musk, billionair investor Mark Cuban, rapper Snoop Dogg and several more, the cryptocurrency which originated as a joke shot to fame and garnered a highly engaged online community of fans.

The rising popularity of the memecoin spurred brands to cash in on the action, with leading deodorant manufacturer Axe promising the launch of a Dogecoin-inspired product once the DOGE price touched $1. While DOGE remains nowhere near this level at the moment, the company has gone ahead and announced a limited edition Dogecoin-themed body spray called “Dogecan” in the US.

Despite these promotions, losses in Dogecoin fail to be contained due to overarching bearish mood among investors towards digital assets. In addition, DOGE is likely to face additional pressure from news about a Dogecoin trader initiating a class-action suit against leading crypto exchange Coinbase over its promotional “sweepstakes” campaign and seeking $5 million in damages.

The leading memecoin has also come under fire among crypto critics who maintain that there is no additional value or use case for Dogecoin which makes it attractive enough as other popular cryptocurrencies that are leading the race to enter the DeFi space. One of its biggest emerging competitors is another memecoin Shiba Inu that has proven its value following the launch of its very own DEX, ShibaSwap, and has also been enjoying interest from Musk lately.

Key Levels to Watch

On the H4 chart of DOGE/USD, moving averages and leading technical indicators MACD and momentum are exhibiting a bearish bias. At the moment, the DOGE price is sitting just above the immediate support at $0.16 and under the pivot point at $0.18.

An increase in selling pressure can drive Dogecoin further lower, to test the next support level at $0.16. On the other hand, if the market sentiment reverses suddenly or buyers jump in, we could see DOGE heading back up above the pivot point and back above the key $0.20 level towards resistance at $0.21.