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Dogecoin (DOGE) has plunged by 16.85% in the last seven days and by over 3% in the last 24 hours as market volatility continues to impact the meme coin. Amid the ongoing price drop, Dogecoin has formed a death cross on its three-hour chart, a trend that signals bearish momentum.
Dogecoin price testing support
As per market data, a death cross has fully formed on DOGE’s three-hour chart and indicates prices will continue to weaken. This development could trigger a wave of pullback on the part of investors. Notably, those who bet long on Dogecoin might decide to close their positions to prevent further losses.
It is also likely to spark selling pressure in the Dogecoin ecosystem, a move that might lead to further price drops if support levels give way. The meme coin crashed from an intraday high of $0.212, breaching several supports to land at its current level.
As of this writing, Dogecoin was changing hands at $0.1985, which reflects a 3.27% decline in the last 24 hours. The trading volume is also low, and only 0.65% in the green at $2.75 billion.
Dogecoin’s Relative Strength Index (RSI), which at press time was 42.34, indicates that the meme coin still has room for further downside. It will take a while before it slips into oversold territory and before recovery might kick in.
Can whale activity and BTC recovery reverse trend?
As reported by U.Today, the $751 million crypto crash served as a catalyst for Dogecoin’s crash. True to prediction, the $0.20 support level has been breached as the king of meme coins begins the month of August on a slippery path.
A possible turnaround for DOGE might happen if ecosystem whales decide to step in and reduce the circulating supply on exchanges. Recently, a Dogecoin whale pulled out 200 million DOGE from Robinhood. The value of the transaction stood at around $43 million.
Meanwhile, if Bitcoin, the flagship crypto asset, recovers from its own downward movement, it could hasten Dogecoin’s rebound move.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team