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With bearish indicators that could point to more declines soon, Dogecoin is at a pivotal point in its history. The lack of conviction among Dogecoin bulls clearly shows that the asset is unlikely to recover in a rapid and explosive fashion, as many may have expected. However, things are not that bad for now.
This technical pattern implies that if selling pressure keeps increasing, DOGE may be about to see a more severe price decline.
With lower highs and weaker rebounds characterizing its recent price movements, DOGE has been in a persistent downtrend since its peak above $0.40. The asset is currently fighting to maintain its position above important support levels, with $0.19 serving as a critical threshold.
Should this level be broken, losses might quicken and push DOGE closer to $0.17, or even lower. Resistance on the upside is located at $0.25, where the 50 EMA is at the moment. Bulls may be able to slow the downtrend if they can push DOGE above this level and maintain momentum.
A breakout is still unlikely, though, given the current weakness, unless there is a substantial change in market sentiment. When a short-term moving average (like the 50 EMA) crosses below a longer-term moving average (like the 100 EMA), this is known as a death cross.
Tomiwabold OlajideThis occurrence is regarded as a strong bearish signal since it suggests that momentum is ebbing and that there may be more downside. Although the death cross has not yet been verified by DOGE, the closing distance between these two EMAs indicates that it will happen soon. Historically, death crosses have caused asset prices to drop significantly, particularly when the market is weak.
Gamza KhanzadaevA protracted period of bearish movement with additional declines toward lower support levels could be experienced by DOGE if the cross is confirmed.
Does DOGE have any hope? Although there is still a chance for DOGE to buck the current trend, the impending death cross makes the price outlook more risky.
Dogecoin may experience additional downward pressure in the upcoming weeks, according to technical indicators, if bulls are unable to quickly retake higher resistance levels. The crossing of the 50 and 100 EMA should be closely watched by traders because it may have an immediate impact on DOGE's future.
Dan Burgin
Vladislav Sopov