Dogecoin Dives Toward Four-Year Low Amid Sustained Downtrend

Dogecoin is continuing its downtrend, trading approximately 55% below its yearly peak of $1.5666. The meme coin's price has fallen toward the 2022 low at $0.0500, with no clear structural supports immediately below current levels on the daily timeframe.

The perpetual futures Open Interest in Dogecoin is increasing, reaching 16 billion DOGE on Friday. However, this rise in Open Interest does not seem to be lifting Dogecoin's outlook, and the path of least resistance remains primarily downward.

Risk-off sentiment prevails in the broader crypto market, with the Fear & Greed Index at 25, indicating an Extreme Fear territory. This suggests that bears still have teeth that could stretch the sell-off toward the critical $0.0500 level.