It’s still a red day to round out a week of bearish moves in the crypto market, with the world’s favorite memecoin Dogecoin (DOGE) still facing pressure to the downside on account of the overall market sentiment keeping investors away from the market. At the time of writing, DOGE/USD is trading at around $0.153.

Elon Musk’s preferred cryptocurrency has been unable to buck the trend as the wider crypto market trades lower, following leading coins Bitcoin and Ethereum lower. One of the biggest factors weighing on the mood towards digital assets is the high likelihood of the Fed increasing interest rates by as soon as March 2022.

Cryptocurrencies had been enjoying quite the bull run with several investors treating the asset class as a hedge against inflation and buying into them amid high volatility and uncertainty in traditional finance markets these past few months. The soaring inflation in the US had spurred more investors away from forex and equities and towards cryptocurrencies, sending Bitcoin, Ethereum and even other cryptos like Dogecoin higher. In addition, news of rising adoption as a payment method also played its part in supporting DOGE.

However, the new year has just begun and there have been no significant supporting fundamental developments to offer hope to Dogecoin investors so far. DOGE found itself in a bit of hot water earlier this week when popular browser Mozilla asked its people for donations in cryptocurrencies, including Dogecoin, a move that was met with severe backlash from several loyal users.

As long as the market mood remains bearish and Bitcoin is unable to reclaim key levels, we can expect Dogecoin to experience cautious trading. On a somewhat optimistic note, losses in the memecoin have been somewhat lower than what many other leading cryptos have been witnessing lately, so it looks like the Doge Army is confident enough to keep holding on to their investments for now.

DOGE/USD Technical Analysis

On the 4-hour price chart of DOGE/USD, moving averages and leading technical indicators MACD and momentum are exhibiting a strong bearish bias. It looks like we could see more downside in DOGE in the near term.

Dogecoin’s price holds under the pivot point at $0.177 and has broken under the first support at $0.162 as well. It looks like we could see the second support at $0.150 being tested soon, so let’s wait and watch.