Dogecoin Drops 30% from Yearly Highs, Risks Falling Below $0.20

As a seasoned researcher with over two decades of experience in the financial markets, I have seen my fair share of market trends and patterns. The recent downward spiral of Dogecoin (DOGE) has piqued my interest, given its meteoric rise earlier this year.

The price of Dogecoin (DOGE) has fallen by more than 30% since it reached a peak of $0.48 earlier in May. This drop is associated with several bearish indicators, which could suggest that the price may continue to fall.

As the year approaches its end and negative sentiment intensifies, technical signs suggest that Dogecoin’s (DOGE) price could drop even more, potentially falling beneath the $0.20 mark. Let me explain the reasons behind this prediction.

Dogecoin’s Bearish Patterns Put It at Risk

On the daily Dogecoin (DOGE) versus US Dollar chart, there’s now a “Death Cross” formation. This is a pessimistic pattern where the short-term average (usually the 50-day moving average) falls below the long-term average (typically the 200-day moving average). It indicates a potential change in market opinion from optimistic to bearish, hinting at a possible downtrend.

Looking at the Dogecoin (DOGE) to US Dollar (USD) chart, it was observed that on December 18, the 50-day moving average (MA) dropped below the 200-day MA. Since then, the value of Dogecoin has fallen by about 20%. This crossover indicates a bearish tendency, meaning the downward price movements have been more significant than the long-term upward price trends, hinting at a potential weakening trend for Dogecoin.

Additionally, the bearish signals given by DOGE’s Super Trend Indicator suggest a potential for additional declines in its price. At present, the price of DOGE is located beneath the red line on this indicator.

The Super Trend line serves as a guide in identifying the prevailing direction and intensity of price movements in assets. This line on the graph shifts color – red for a falling trend and green for a rising trend – to reflect the trend’s direction. If an asset’s value drops below the Super Trend line, it signifies a declining trend, hinting that bearish momentum might continue.

DOGE Price Prediction: Meme Coin Eyes Sub $0.20 

On a daily basis, Dogecoin (DOGE) is currently being traded below the resistance of $0.33. Repeated surges in selling activity at this point might cause its value to drop and reach the support level at $0.28.

If the current support doesn’t hold up, the potential next significant level for DOGE would be around $0.23. However, if buyers can’t keep DOGE above this level, there’s a possibility that it might fall below the $0.20 range, potentially reaching as low as $0.17.

Conversely, breaking through the $0.33 barrier might catapult DOGE towards its highest point for the year at $0.48.

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2024-12-22 13:09