Dogecoin (DOGE) has fallen over 30% from its yearly high of $0.48 earlier this month. This decline is linked to multiple bearish signals, increasing the likelihood of continued price drops.
With the year coming to an end and bearish pressure increasing, technical indicators suggest a further decline in DOGE's price, which could slide below $0.20. This is why.
Dogecoin's Bearish Pattern Puts It at Risk
A 'Death Cross' pattern has formed on the DOGE/USD daily chart. This is a bearish pattern when an asset's short-term moving average (usually the 50-day moving average) crosses below the long-term moving average (usually the 200-day moving average), suggesting a shift in market sentiment from positive to negative.
Dogecoin Death Cross. Source: TradingView
According to data from the DOGE/USD chart, on December 18, DOGE's 50-day MA crossed below the 200-day MA, and the meme coin's price has dropped 20% since then. This crossover is a bearish signal, indicating a weakening trend, as recent declines overshadow long-term price increases.
Furthermore, the bearish readings from DOGE's Super Trend indicator confirm the likelihood of continued price decline. At the time of writing, DOGE's price remains below the red line of this indicator.
Dogecoin Super Trend. Source: TradingView
The Super Trend indicator tracks the direction and overall strength of an asset's price trend. It appears as a line on the price chart that changes color to reflect the trend direction: red for a bearish trend and green for a bullish trend. When the asset's price is below the Super Trend line, it indicates a bearish trend, suggesting that the downward momentum is likely to continue.
DOGE Price Forecast: Meme Coin Heading Below $0.20
On the daily chart, DOGE is trading below resistance at $0.33. Continuous spikes in selling pressure at this level could push the price down to the support area of $0.28.
If this support is not maintained, the next important level for DOGE lies at $0.23. If buyers cannot defend this level, the meme coin could slide below the $0.20 range, potentially touching $0.17.
Dogecoin Price Analysis. Source: TradingView
Conversely, if it breaks through the resistance level of $0.33, DOGE could move towards the yearly high of $0.48.
