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Dogecoin (DOGE) is coming off as one of the hardest hit cryptocurrencies on the market, as its price has dropped to a historic low. Per data from CoinMarketCap, the Dogecoin price is now pegged at $0.0985, down by 6.91% in the past 24 hours.
Dogecoin death cross confirmed
The loss in the price of Dogecoin has expanded to more than 18% in the trailing seven-day period. As of this writing, market data shows it fell from a daily high of $0.1059 to a low of $0.097 before rebounding slightly to its current level.
Amid the ongoing sell-off, the DOGE price has confirmed a death cross on both the hourly and daily charts. Notably, a death cross is formed when the short-term moving average (nine-day) falls below a medium-term moving average (21-day).
The death cross formed has validated the DOGE price downtrend, making a case for bears. Despite the positive signals in DOGE open interest and the futures market, Dogecoin's price is still facing a strong correlation with Bitcoin, which has dropped below the $70,000 mark.
For Dogecoin, reclaiming the resistance at $0.10 is crucial to maintaining short-term momentum.
DOGE price rebound catalysts
As with many assets in the financial world, the Dogecoin price is unlikely to sustain the sharp sell-off it just recorded. Owing to its status as the biggest meme coin, investors are now more focused on key catalysts that can help fuel its rebound.
Earlier this week, Tesla CEO Elon Musk confirmed plans that Dogecoin might actually be taken to the moon by next year. While the plans remain vague, the announcement has reshaped confidence in the promotional role of Musk and his companies around the coin.
Historically, Dogecoin is known to experience a sell-off in February, with the current 5.4% crash attesting to that. However, subsequent months are known to come with mild but progressive gains. If history aligns, this may be the worst month for DOGE for the foreseeable future.
Godfrey Benjamin
Dan Burgin
Gamza Khanzadaev
Alex Dovbnya