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Dogecoin (DOGE) Faces Death Cross
The crypto market is in for a rude awakening as Dogecoin’s price chart reveals a dreaded death cross formation, signaling a potential 26% drop to $0.18 or even a more severe correction down to $0.13.
As reported by TradingView, the death cross has appeared on DOGE’s charts, indicating that the short-term moving average has crossed below the long-term one. This ominous sign often precedes a sharp decline in price, leaving investors in a state of panic.
For those unfamiliar with crypto jargon, a death cross is a bearish trend indicator characterized by the 50-day simple moving average (MA) dropping below the 200-day MA. In essence, this signals the end of an uptrend and the beginning of a potentially devastating downturn.
While some might argue that DOGE’s recent pump was unsustainable and overdue for a correction, others believe that the cryptocurrency has merely paused to consolidate before making another run at new heights. The truth likely lies somewhere in between.
For now, however, it seems that the bearish sentiment is gaining traction. According to our analysis, the nearest strong support level sits around $0.18, which would represent a 26% drop from current levels. On a more pessimistic note, DOGE’s price could revisit the pre-November pump levels at approximately $0.13.
In this worst-case scenario, we’d be looking at a whopping 40% drop in value for Dogecoin and an eye-watering 72% decline from local highs.
It is essential to remember that no indicator is foolproof, and the cryptocurrency market can turn on a dime. Therefore, traders would do well to keep an open mind and stay vigilant as the situation unfolds.
Would this death cross ultimately serve as a trap for bears or will DOGE’s price continue its downward trajectory? Only time will tell.
Stay tuned for further updates!
Source: u.today
