Dogecoin (DOGE) Price Plummets: May Fall Below $0.20 in the Future

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The price of Dogecoin (DOGE) has dropped more than 30% since reaching an annual high of $0.48 at the beginning of this month. This price correction is closely related to multiple bearish signals, suggesting that DOGE may further decline in the future, potentially falling below $0.20.

Increasing Bearish Signals, DOGE Faces Downward Risk

On the daily chart of DOGE/USD, a 'death cross' pattern has emerged. This pattern occurs when the short-term 50-day moving average crosses below the long-term 200-day moving average, usually indicating a shift in market sentiment to a pessimistic outlook. After the 50-day moving average of DOGE fell below the 200-day moving average on December 18, the price plummeted by 20%, indicating that the current upward trend has weakened and market sentiment is turning negative.

Furthermore, the Super Trend indicator for DOGE also shows bearish signals. The current price is below the red line of this indicator, suggesting that the downward trend may continue. The Super Trend line is a dynamic indicator used to track the strength and direction of price trends; when below the red line, it typically signals bearish momentum.

DOGE Price Prediction: Targeting $0.20

Currently, DOGE's price is below the resistance level of $0.33. If selling pressure intensifies, it may push the price down to $0.28. If this support level is breached, DOGE could fall to $0.23, with further downside support at $0.20. If the price breaks through the resistance level of $0.33, it could potentially rebound to the yearly high of $0.48.

In summary, if market sentiment continues to lean negative, the price of DOGE may further decline, breaching the key support level of $0.20.

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