Dogecoin has declined nearly 18% in one month, with prices falling below $0.17 and testing critical support at $0.137.
The formation of a death cross between short and long-term moving averages indicates rising bearish momentum in the DOGE market.
A break below the 200-day average could push Dogecoin to $0.13, marking a potential 20% drop from current levels.
The Dogecoin has been falling significantly within the last few weeks, sliding almost 18% since last month, when it hit more than $0.20, to less than 0.17 yesterday at the middle of June. It went even lower, setting up a technical failure called a death cross, caused when the short-term moving average crosses the longer-term moving average. This trend, which is frequently considered to be a bearish one, might lead to an extended bearish trend of the popular meme coin.
On the pressure side, there is the key support level.
Dogecoin is also trading slightly above an important support area at 0.137. A 200-day moving average of the weekly chart marks that level as a major technical target of many traders. Unless this support can hold, market analysts claim that another leg down may be witnessed, with the coin dropping by a maximum of 20% and retesting the price area of $0.13.
The review of the charts weekly demonstrates that the 23-day moving average has already dropped beneath the 50-week one. This is the confirmation of a death cross, which in the past has been followed by further declines, especially on sentiment assets such as Dogecoin. It is not an unusual phenomenon, but, coming along with the present background of the market, it puts additional pressure on those who hold DOGE cryptocurrency and the cryptocurrency world as a whole.
As a wider market slide takes its toll, sentiment weakens.
More broadly, meme coin and Dogecoin hype have lessened as the crypto market space undergoes a speculative-driven cool-off. The recent liquidation imbalance of 514% has also affected the long positions, furthering the already prevailing downward trend. Essentially, coupled with the technical breakdown, the conditions make a more reserved future for DOGE within the near future.
Dogecoin is also experiencing intense bear signals, as important technical levels begin to break down and the flow of trade becomes weak. Although there might be a bounce in the short term, with the appearance of the death cross and the inability to sustain support, the market might roll down, and the prices may become even lower than at the beginning of 2023.
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