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As the situation on the cryptocurrency market continues to be difficult for most people to understand, at least in the fundamental field, the only thing that continues to provide clarity is the price chart and the behavior of battle-tested indicators.
One of them is moving averages, and the constructions they form when interacting with the most eloquent examples were recently seen in the price chart of Dogecoin (DOGE), beloved meme coin and one of the biggest cryptocurrencies on the market.
Gamza KhanzadaevRecently, DOGE saw the formation of a death cross on its price chart, as the 23-day moving average crossed the 200-day moving average from above to below. This ominously named pattern often precedes a downward trend for the asset, and indeed, after it appeared, the price of Dogecoin experienced a drop worth over 30%, going all the way down from $0.24 to $0.164.
However, this is not the end of the misfortunes for the popular meme cryptocurrency, as another death cross is approaching. This time, it is the 50-day moving average that is about to cross the 200-day band.
Godfrey BenjaminWe saw one do it in the short term, taking the price down 30%; now a medium term indicator is about to do the same. The countdown is in a days, and there is still a chance that the moving averages will not cross but will bounce back after a collision.
Given the market's recent trends, one would say that the latter scenario is less likely. But that is the beauty of it, because this is a field of reaction, not action.
Arman ShirinyanIf another death cross forms, then the playbook is understandable, but until then it is just the probability of more pain to come for Dogecoin enthusiasts.
Dan Burgin
Vladislav Sopov