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Dogecoin (DOGE), the leading market meme coin by market cap, has seen its value drop more than 9% over the past day. With this price drawdown, a potential death cross now hangs on the horizon for DOGE, hinting at cautious sentiment among investors.
Looming DOGE death cross setup
As indicated by the DOGE/USD chart from TradingView, the nine-day simple moving average is about to slip below the 26-day average. This is a classic setup for a death cross.
The recent resistance at $0.30 has further added to the bearish pressure. The DOGE price faced rejection on good volume, and the latest red candles have had greater participation. This makes it seem like the downside was not just a coincidence.
Although support sits close by, the question remains whether buyers are prepared to step in ahead of another bearish crossover. A hold above $0.30 could stabilize things for now. However, the narrative might shift again if support falls below this level.
As of press time, DOGE is priced at $0.2647, down 9.2% over the past 24 hours. The trading volume also decreased by over 17.9% to $6.5 billion. Dogecoin has decreasing interest, further validating the impending death cross.
Dogecoin investors still have hope
While the DOGE price is down over the past 24 hours, it is up more than 13.5% on the weekly charts. Likewise, the price of Dogecoin has rallied 14.8% over the past month.
The weekly and monthly price surges, therefore, suggest that DOGE is in a consolidation phase. Typically, the emergence of a bullish signal during such periods usually results in bullish price reversals.
For DOGE, the meme coin recently confirmed a golden cross on its four-hour chart. If this trend plays out again, it would invalidate the looming death cross, demonstrating a bullish outlook.
Two key factors to help fuel a DOGE price breakout include incoming ETFs and the accumulation of new crypto treasury companies.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team