Dogecoin (DOGE) Significant Drop Risk Warning! Holders, please be prepared

Recently, the Dogecoin (DOGE) market has been changing dramatically, and multiple danger signals have already been raised! Under the dual pressure of technical and funding factors, the DOGE price may see a significant correction of 20%. Holders must stay vigilant!

What is the risk of a sharp decline facing Dogecoin: What exactly has happened?

1. Large-scale sell-off triggers market panic

Recently, the well-known trading platform Robinhood conducted a large-scale sell-off, transferring approximately 146.6 million DOGE, valued at up to $56.5 million.

Even more concerning is that 61 million DOGE have flowed back into the exchange, which is usually a signal that the sell-off is about to continue, further increasing the market's selling pressure.

2. Technical indicators release a warning for decline

On technical charts, DOGE has shown a typical “inverted hammer pattern,” which is a dangerous signal indicating that a downtrend is about to accelerate.

Once the price breaks below the key support level of $0.42, the downside potential will further open up, possibly dropping to as low as $0.35, with a drop of up to 20%!

Is there still hope? Where is the glimmer of hope?

Despite the severe situation, DOGE is not without support:

200-day moving average support: DOGE is still operating above the 200-day moving average, which may stabilize in the short term and leave a glimmer of hope for a rebound.

Market sentiment nearing extremes: On-chain data shows that the long-short ratio of DOGE has dropped to 0.78, which is a low point for this year. This depressed sentiment may accumulate momentum for a market rebound.

Dogecoin holders: How to respond to the current situation?

Faced with market uncertainty, holders are at a crossroads:

Choose to add positions? Take advantage of price corrections to accumulate at lower levels and seize the opportunity for the next round of increases.

Choose to cut losses? Avoid greater risks from breaking key support levels and timely exit to preserve assets.

The decision-making moment has arrived! What do you think?

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