Recently, the Dogecoin (DOGE) market has been volatile, with multiple danger signals already sounding! Under the dual pressure of technical and financial factors, the DOGE price may experience a significant 20% pullback, and holders must be vigilant!
The risk of a sharp drop facing Dogecoin: What exactly happened?
1. Large-scale sell-off triggers market panic
Recently, the well-known trading platform Robinhood conducted a large-scale sell-off, transferring about 146.6 million DOGE, valued at up to $56.5 million.
More worrisome is that 61 million DOGE has flowed back into exchanges, which is usually a signal that selling is about to continue, further increasing market selling pressure.
2. Technical indicators release a warning for a downturn
On the technical chart, DOGE shows a typical 'inverted hammer' pattern, which is a dangerous signal that a downtrend is about to accelerate.
Once the price falls below the key support level of $0.42, the downside space will further open, potentially dropping to $0.35, a decline of up to 20%!
Is there still a turning point? Where is the glimmer of hope?
Despite the grim situation, DOGE is not without support:
200-day moving average support: DOGE is currently still trading above the 200-day moving average, which may stabilize the situation in the short term, leaving a glimmer of hope for a rebound.
Market sentiment is nearing extremes: On-chain data shows that the long-short ratio of DOGE has dropped to 0.78, a low for this year. This state of depressed sentiment may build momentum for a market rebound.
Dogecoin holders: How to respond to the current situation?
Facing market uncertainty, holders stand at a crossroads:
Choose to increase positions? Take advantage of price pullbacks to accumulate, aiming for the next round of price increase.
Choose to cut losses? Avoid greater risks from breaking key support levels and timely withdraw to preserve assets.
Decision time is here! What do you think?
Do you think Dogecoin can hold the key support at $0.42? Or will it break through, further declining?
