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Dogecoin held near $0.070 on Tuesday after falling 3.5% last week, as stronger derivatives readings and bullish momentum divergences suggested that selling pressure could be easing. Still, DOGE remained below its major exponential moving averages. Meanwhile, the wider meme coin sector continued to face weak benchmark returns and heavy net selling.
Cryptocurrency commentator David Gokhshtein criticized traders on Monday for chasing the next Dogecoin or Shiba Inu while showing limited support for established meme coins. In an X post, he said some traders were disrespecting DOGE, SHIB, and PEPE while searching for another token capable of matching their earlier growth.
Gokhshtein argued that the sector would perform better when its largest and most recognized assets gain traction. Their earlier launches helped fuel demand for similar joke-based tokens. Last week, he also said some market participants wanted DOGE and SHIB to fail without considering possible spillover effects on projects they view as legitimate.
Can the broader meme coin market gain lasting traction while its largest assets remain under pressure?
SHIB and PEPE have recently performed better than the broader cryptocurrency market, which lost 4.61% of its total capitalization during the past month. Dogecoin has not matched that relative strength. The MarketVector Meme Coin Index fell nearly 40% year to date and declined 2.64% during the past month.
The benchmark carries heavy exposure to DOGE and SHIB. It does not trade as a stock or exchange-traded fund because MarketVector calculates it as a dollar-based index. Meanwhile, CryptoQuant reported $1.21 billion in cumulative net meme coin selling pressure on Binance since Bitcoin reached its latest all-time high last October.
CoinGlass data showed Dogecoin’s long-to-short ratio at 1.25 on Tuesday, its highest level in more than one month. A reading above one means long positions outnumber short positions. This balance shows traders increasingly expect the Dogecoin price to rise.
Dogecoin’s funding rate also turned positive on July 24 and reached 0.0074% on Tuesday. Positive funding means long traders pay short traders. Even so, DOGE remained below the 50-day, 100-day, and 200-day EMAs at $0.075, $0.083, and $0.100.
The daily RSI formed a higher low as DOGE posted a lower price low on August 1. This bullish divergence indicated weaker downside momentum. The Awesome Oscillator showed a similar pattern because its recent lows rose while the Dogecoin price stayed near its lows.
Immediate support sits at $0.070, followed by the yearly low at $0.067. A daily close below that level could expose $0.065. Initial resistance stands at $0.075, followed by $0.080 and $0.083. Higher barriers remain at $0.088, $0.100, and $0.102.
Also Read: Dogecoin Volume Surges While Rare Buy Signals Point to Recovery
Dogecoin remains under a bearish technical structure, yet improving derivatives data and bullish momentum divergences suggest weaker selling pressure. Traders continue watching $0.070 support and $0.075 resistance, while DOGE, SHIB, and PEPE may influence sentiment across the wider meme coin market.
