Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Dogecoin's slow decline might be heading into technical trouble. As of this week, DOGE is trading at just over $0.107 - barely holding above the Oct. 10 dump level of $0.0995, when $40 billion at least were liquidated in margin positions across the crypto market.
What's more concerning is what's developing above: a double death cross configuration between the 23-week and 50-week simple moving averages (SMA), both on track to cross below the long-term 200-week exponential moving average (EMA). This kind of double punch on the TradingView chart is usually not ignored by market technicians, especially when it looks this clean on a weekly chart.
The red EMA200 line is currently at $0.15322 per DOGE, and the 23-SMA and 50-SMA are trending down at $0.17215 and $0.18505, respectively. These levels are all coming together in an area that a lot of crypto traders are watching closely.
The rescue plan for DOGE
If Dogecoin does not break decisively higher, it might enter a period of chaotic volatility. The orange circle on the chart shows this danger zone, which is expected to be triggered within the next few candles - possibly as soon as late February.
In the past, when a single death cross happened, it usually led to a 15-30% drop in meme coin cycles. A double cross this close to multimonth lows makes that threat much worse. Some are saying that the $0.09-$0.11 support band might not hold if the bulls do not get back at least $0.153 in the next few weeks.
Unless there is a big jump in volume or a big whale steps in to change things, the double death cross might be DOGE's toughest rival this year.
Gamza Khanzadaev
Caroline Amosun
Godfrey Benjamin
Tomiwabold Olajide