Dogecoin has fallen 30% from its annual high, facing the risk of dropping below $0.20

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The price of Dogecoin (DOGE) has fallen over 30% from its annual high of $0.48 at the beginning of this month. This decline is associated with several bearish signals, increasing the likelihood of further price drops.

As the year comes to a close, bearish pressure is mounting, and technical indicators suggest that the price of DOGE will continue to decline, potentially falling below $0.20. Here are the reasons.

Bearish patterns of Dogecoin put it at risk

The DOGE/USD daily chart has formed a "death cross" pattern. This is a bearish pattern that occurs when an asset's short-term moving average (usually the 50-day moving average) falls below its long-term moving average (usually the 200-day moving average), indicating a shift in market sentiment from positive to negative. 

From the DOGE/USD chart, the 50-day moving average of DOGE fell below the 200-day moving average on December 18, after which the price of this meme coin has plummeted by 20%. This cross is a bearish signal indicating that the trend is weakening, with recent price declines surpassing long-term price increases.

Additionally, the bearish reading from the DOGE super trend indicator confirms the possibility of further declines. As of the time of writing, DOGE's price remains below the red line of this indicator. 

The super trend indicator tracks the overall direction and strength of an asset's price trend. It is displayed on the price chart as a line, with its color changing to reflect the trend direction: red indicates a downtrend, while green indicates an uptrend. When the asset price is below the super trend line, it indicates a downtrend, suggesting that bearish momentum may persist.

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