Dogecoin volatility increases! Down 30% from its peak, can it hold above $0.20?
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The price of Dogecoin (DOGE) has fallen over 30% from this month's annual high of $0.48. This decline is associated with multiple bearish signals, increasing the likelihood of further price drops.
As the year comes to a close, bearish pressure is mounting, and technical indicators suggest that DOGE's price may decline further, potentially falling below $0.20. The reasons are as follows.
A 'death cross' pattern has formed on the DOGE/USD daily chart. This is a bearish pattern that occurs when an asset's short-term moving average (typically the 50-day moving average) crosses below its long-term moving average (usually the 200-day moving average).
On the daily chart, DOGE is trading below the resistance level of $0.33. If the selling pressure at this level continues to rise, it may push the price down to the support level of $0.28.
If this support level is breached, the next key level for DOGE will be at $0.23. If the bulls cannot hold this level, the meme coin may drop below the $0.20 region and potentially fall to $0.17.
On the other hand, a successful breakout above the resistance level of $0.33 could propel DOGE to its annual peak of $0.48.
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