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Dogecoin (DOGE) has just confirmed a death cross after a weekly loss of over 10.6% on the cryptocurrency market. The lingering bearish pressure has crushed rebound hopes entertained in some sections of the ecosystem.
Dogecoin death cross signals weak momentum for meme coin
Notably, a death cross occurs when a short-term moving average falls below a long-term moving average. Investors consider this development a bearish signal.
Dogecoin’s 9-day and 26-day moving averages have formed at $0.1357. This confirms the weak momentum of DOGE on the meme coin market and the continued downward trajectory of the asset. The development has dampened rebound hopes in the interim, as market participants await a bullish catalyst.
CoinMarketCap data reveals bearish metrics for the king of meme coins. Within the last 24 hours, DOGE has slipped from a daily high of $0.1265 to a low of $0.1232. As of press time, Dogecoin is changing hands at $0.1248, which reflects a 1.3% decrease within the time frame.
With Dogecoin trading approximately 8% below the crossover point, the bearish pressure might linger as the price continues to show weakness.
Additionally, Dogecoin’s trading volume has crashed by a massive 43.12% to $830.82 million amid the decline in price. Technical indicators show that DOGE is bearish as its Relative Strength Index (RSI) is at 38.52, signaling weak but not oversold conditions. This implies that the meme coin might experience a further decline.
The Dogecoin market is dominated by sellers, and if nothing happens, the decline could see DOGE slip below the $0.12 support. In order for DOGE to exit the current scenario, it needs to recover to $0.130.
Crypto market meltdown amplifies selling pressure on DOGE
The recent crypto meltdown likely triggered the formation of Dogecoin’s death cross. The meme coin recently recorded a 2,563% liquidation, which left bullish traders with $1.2 million losses within four hours.
The meltdown sparked by geopolitical tensions did not affect only Dogecoin, as other assets in the crypto sector suffered losses. This is because investors moved their funds into safe-haven assets like gold. The lingering effect of this might be responsible for the continued downward slide of Dogecoin on the market.
It appears that what Dogecoin needs is a bullish catalyst that could reverse the bearish pressure. This will also involve reversing the declining volume and stabilizing price movement. If ecosystem whales mop up the meme coin, it could help the bleeding that Dogecoin is experiencing.
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