Recently, the DOGE market has been volatile, with multiple danger signals already sounded! Under the dual pressure of technical and funding aspects, DOGE price may see a significant correction of 20%, holders must remain vigilant!
The risk of a crash facing DOGE: 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, worth up to $56.5 million.
More worryingly, 61 million DOGE has flowed back into exchanges, which is usually a signal that sell-off is about to continue, further increasing market selling pressure.
2. Technical indicators release downtrend warnings
On the technical chart, DOGE has shown a typical 'inverted hammer pattern', which is a dangerous signal that a downtrend is about to accelerate.
Once the price falls below $0.42, this key support level, the downward space will further open up, potentially dropping to $0.35, with a decline of up to 20%!
Is there still hope? Where is the glimmer of hope?
Despite the grim situation, DOGE is not without support:
200-day moving average support: DOGE is currently still operating above the 200-day moving average, which may stabilize in the short term, leaving a glimmer of hope for a rebound.
Market sentiment is nearing extremes: On-chain data shows that DOGE's long-short ratio has dropped to 0.78, the lowest point this year. This gloomy sentiment may accumulate momentum for a market rebound.
DOGE holders: How to respond to the current situation?
In the face of market uncertainty, holders are at a crossroads:
Choose to increase holdings? Take advantage of the price pullback to accumulate, aiming for the next round of price increase.
Choose to stop-loss? Avoid greater risks brought by breaking key support levels, timely withdrawal to preserve assets.
The decision moment has arrived! What do you think?
Do you think DOGE can hold the key support at $0.42? Or will it break through and further decline?