Dogecoin has significantly decreased over the past few weeks, sliding nearly 18% since last month, when it was above $0.20, down to below $0.17 yesterday in mid-June. It even fell lower, establishing a technical fault known as a death cross, which occurs when the short-term moving average crosses below the long-term moving average. This trend, often seen as bearish, could lead to a prolonged downtrend for this popular meme coin.
On the Pressure Side, There Is Important Support Level
Dogecoin is also trading slightly above the critical support level of 0.137. The 200-day moving average on the weekly chart marks this level as a key technical target for many traders. If this support level cannot hold, market analysts suggest that we could see another decline, with the coin dropping as much as 20% and re-testing the price area of $0.13.
Looking at the weekly chart shows that the 23-day moving average has fallen below the 50-week moving average. This confirms a death cross, which in the past has been followed by further declines, especially for sentimental assets like Dogecoin. This is not an unusual phenomenon, but, along with the current market context, it adds pressure to DOGE holders and the entire cryptocurrency world.
As the Market Recession Widens, Sentiment Also Weakens
Looking wider, the meme coin frenzy and Dogecoin has eased as the cryptocurrency market goes through a cooling phase due to speculation. The recent liquidation imbalance of 514% has also affected long positions, driving the prevailing downtrend. Essentially, along with the technical fault, conditions create a more cautious future for DOGE in the near term.
Dogecoin is also experiencing strong bearish signals as key technical levels begin to break and trading volume weakens. While there may be a short-term recovery, with the emergence of a death cross and an inability to maintain support, the market may decline further and prices could even drop below early 2023 levels.