Dogecoin ($DOGE ) has fallen more than 30% from its yearly high of $0.48 earlier this month. The decline has been accompanied by a number of negative signals, raising the possibility that the price will continue to fall.
As the year comes to a close and bearish pressure builds, technical indicators suggest that DOGE could continue to decline, potentially below $0.20. Here’s why.
Dogecoin's Bearish Patterns Put It at Risk
A “Death cross” pattern has formed on the DOGE/USD chart for the day. This is a bearish pattern that forms when an asset’s short-term moving average (usually the 50-day moving average) crosses below its long-term moving average (usually the 200-day moving average), indicating a change in market sentiment from positive to negative.
A reading from the $DOGE /USD chart shows that DOGE’s 50-day MA crossed below its 200-day MA on December 18, 2024, and the price of the meme coin has fallen by 20% since then. This crossover is a negative signal, indicating that the trend is weakening, with recent declines outweighing longer-term gains.
Furthermore, negative readings from DOGE’s Super Trend indicator confirm the possibility of further downside. At the time of writing, DOGE’s price is below the red line of this indicator.
The Super Trend indicator tracks the overall direction and strength of an asset's price trend. It appears as a line on the price chart, changing color to reflect the trend direction: red for a downtrend and blue for an uptrend. When the asset's price is below the Super Trend line, it indicates a downtrend, suggesting that the negative momentum is likely to continue.
DOGE Price Prediction: Heading Below $0.20
On the daily chart, $DOGE is trading below the resistance at $0.33. Continued selling pressure at this level could push the price down to the support at $0.28. If this support fails to hold, the next important level for DOGE is $0.23. If buyers fail to defend this level, the meme coin could slide below the $0.20 zone, potentially reaching $0.17.
On the other hand, if it successfully clears the $0.33 resistance, DOGE could move towards the yearly high at $0.48.
