The cryptocurrency market has been hit hard by a wave of selling pressure in the past week, wiping out billions of dollars in value. Among the worst performers was Dogecoin, the meme-inspired coin that has a loyal fan base and a celebrity supporter in Elon Musk.

Dogecoin price dropped by more than 16% from its weekly high of $0.095 to its current level of $0.0791, according to Coinbase. The coin also broke below a key support zone of $0.084-0.0793, which had acted as a launchpad for its previous rallies.

The decline in Dogecoin price was triggered by a combination of factors, including the overall bearish sentiment in the crypto market, the lack of positive catalysts for the coin, and the fading hype around Dogeday, a social media campaign that aimed to push the coin to $1 on April 20.

Dogecoin price is now facing a critical test of its support trendline, which has been holding up since late January. If the coin can bounce back from this level and reclaim the $0.084 resistance, it could resume its uptrend and target the $0.1 psychological mark, which would represent a 24% increase from the current price.

However, if Dogecoin price fails to hold above the support trendline and slides further down, it could trigger a deeper correction and erase its year-to-date gains. The next major support levels for the coin are $0.07 and $0.06, which are 11% and 23% lower than the current price, respectively.

Dogecoin price is still up by more than 2,000% since the start of the year, thanks to its viral popularity on social media platforms like Reddit and Twitter, as well as the endorsement of Tesla CEO Elon Musk, who often tweets about the coin and calls it his favorite crypto.

However, Dogecoin price also faces stiff competition from other cryptocurrencies that offer more functionality and innovation than the coin, which was created as a joke in 2013. For instance, Shiba Inu (SHIB), a self-proclaimed “Dogecoin killer”, has surged by more than 30,000% in the past month and has been listed on several top-tier exchanges.

Dogecoin price may also be affected by regulatory uncertainty, as some authorities may view it as a security rather than a currency. Recently, a board member of Dogecoin Foundation said that the coin is “untouchable” by regulators because it is decentralized and has no central authority or issuer.

However, this claim may not hold up in court if regulators decide to crack down on Dogecoin or other similar coins that have no clear use case or value proposition other than being a meme or a social phenomenon.

Dogecoin price is currently trading at a crossroads, and its future direction will depend on how it reacts to the support and resistance levels that are shaping its chart. The coin may also need some fresh catalysts or positive news to reignite its momentum and attract new buyers.