As the Dogecoin ($DOGE ) price consolidates just above $0.40, investors are weighing up whether the market could be about to vault to new highs, or whether a deeper pullback could be in store.

Dogecoin has come within striking distance of $0.50 on two occasions in the past two weeks.

But a double top may have now formed, suggesting the bears could be about to regain control of this market. Other recent technical developments are also flashing warning signs.

$DOGE also broke to the south of a short-term trend this week and has slipped beneath its 21DMA, further suggesting a waning of bullish momentum.

If support in the $0.33-35 area in the form of the late 2021 highs were to break, a sudden 50% drop back to early 2024 highs in the $0.20 area could be on the cards.