Dogecoin has dropped over 30% from its year-to-date high of $0.48, indicating intensifying bearish sentiment and an increasing risk of further declines.
The 'death cross' on the daily chart suggests the arrival of a bear market, with the 50-day moving average crossing below the 200-day moving average on December 18.
Currently, DOGE's key support is at $0.28. If the bear market continues to evolve and this support level is broken, it may continue to dip below $0.20.
The price of Dogecoin (DOGE) has dropped over 30% from this month's annual high of $0.48. Multiple bearish signals behind this downtrend suggest the price may decline further.
As the year-end approaches, bearish pressure is gradually intensifying, and technical indicators also suggest that DOGE may continue to decline, potentially falling below $0.20. The reasons are as follows:
Dogecoin faces bear market risk
On the daily chart of DOGE/USD, a 'death cross' pattern has emerged. This pattern forms when a short-term moving average (usually the 50-day moving average) crosses below a long-term moving average (usually the 200-day moving average), serving as a typical bearish signal, indicating a shift in market sentiment from bullish to bearish.
The DOGE/USD chart shows that on December 18, DOGE's 50-day moving average fell below the 200-day moving average, after which the meme coin's price plummeted by 20%. This crossover is viewed as a bearish signal, indicating that the current uptrend is weakening, and the recent price drop has exceeded the long-term price increase.
Additionally, the super trend indicator for DOGE has also provided a bearish signal, further confirming that the price may continue to decline. As of the time of this writing, DOGE's price has fallen below the red line of this indicator.
The super trend indicator tracks the overall trend and strength of asset prices, displayed as a line on the chart, changing colors based on trend direction: red indicates a downtrend, while green indicates an uptrend. When the price is below the super trend line, it typically suggests a downtrend, implying that bearish pressure may persist.
DOGE Price Prediction: The meme coin may fall below $0.20.
On the daily chart, DOGE has already broken below the resistance level of $0.33. Continuous selling pressure at this level may push the price down to the support level of $0.28.
If this support level is also broken, the next key support level for DOGE is $0.23. If the bulls cannot hold this position, Dogecoin may fall below the $0.20 area, potentially even dipping to $0.17.
On the other hand, if DOGE successfully breaks through the resistance level of $0.33, it could drive the price higher, aiming for an annual peak close to $0.48.
