Dogecoin 🐶 started August with a technical signal known as a "death cross" on the four-hour timeframe, which is considered one of the most prominent negative signals in technical analysis 📉
🔻 What does that mean? A "death cross" occurs when the short-term moving average (50 periods) falls below the long-term moving average (200 periods), which usually indicates a decline in momentum and the beginning of a potential downward wave.
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📊 Current Technical Situation:
▫️ Current price: $0.2013 (+1.15% in the last 24 hours)
▫️ Highest price in July: $0.287
▫️ Lowest price in August so far: $0.1888
The currency is currently trading between two important daily moving averages:
🔸 SMA 50 days = $0.196 (temporary support)
🔸 SMA 200 days = $0.203 (technical resistance)
This means the price is currently stuck between a support and resistance level 🔄, and any strong break of either could trigger significant price movement.
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📉 Negative Scenario (Bearish):
If the price breaks below the $0.196 level, accompanied by an increase in selling volumes, we may see a decline towards the strong support level at $0.14, which previously formed a stable bottom 🧱
🔻 Negative indicators include:
Continued weakness in market momentum (RSI negative)
Selling pressure from short-term investors
Decline in general confidence in the digital market
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📈 Positive Scenario (Bullish):
If the price breaks above the $0.208 level (which is the 200-day moving average), we may see the first signal of market recovery and the beginning of an upward wave towards the following targets:
✅ $0.26
✅ $0.29
💡 Conditions for this: The necessity of support from liquidity and an increase in trading volumes, in addition to a general improvement in the market, especially from Bitcoin.
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🦈 Positive surprise – Whales entering:
Despite these negative technical signals, there is a notable development:
Major investors (whales) have purchased over 1 billion DOGE in the last 24 hours, equivalent to about $200 million! 😱
This indicates a conviction among major traders of an imminent rise 🔥
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🧠 Tips for investors:
💡 For short-term traders:
Carefully monitor the $0.196 level as support, and $0.208 as resistance.
Do not enter a trade without clear technical confirmation.
Use stop-loss orders to reduce risks.
💡 For long-term investors:
Rely on a dollar-cost averaging strategy (DCA).
Follow the movements of the whales, and the overall performance of the market.
Dogecoin is highly correlated with the general mood and social media, so be cautious in making emotional decisions.
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📌 Summary:
Dogecoin is at a critical moment, as negative technical signals clash with growing confidence from major investors.
📍 The real battle is now around the levels: $0.196 and $0.208, and any break or breakthrough of either could determine the next direction 🚦
📣 Do you see Dogecoin preparing for a breakout?
Or is the decline still in control?
Share your opinion in the comments 💬👇