Dogecoin Faces Severe Decline as Death Cross Signals Deeper Losses

Dogecoin has fallen significantly over the past few weeks, sliding nearly 18% since last month, when it was above $0.20, down to below $0.17 yesterday in mid-June. It even dropped lower, establishing a technical flaw known as a death cross, which occurs when the short-term moving average crosses below the long-term moving average. This trend, often considered a bearish trend, could lead to a prolonged bearish trend of this popular meme coin. Regarding the Pressure Side, There Is an Important Support Level Dogecoin is also trading slightly above the important support zone of 0.137. The 200-day moving average on the weekly chart marks that level as the primary technical target for many traders. If this support level cannot hold, market analysts believe we could witness another bearish phase, with this coin falling by as much as 20% and re-testing the price zone of 0.13.

The weekly chart review shows that the 23-day moving average has fallen below the 50-week moving average. This confirms a death cross, which in the past has been followed by subsequent bearish trends, especially for sentimental assets like Dogecoin. This is not an unusual phenomenon, but along with the current market context, it adds more pressure on DOGE holders and the entire cryptocurrency world. When the Market is More Bearish, the Sentiment Also Weakens Looking more broadly, the meme coin and Dogecoin craze has waned as the cryptocurrency market experiences a cooling-off period due to speculation. The recent liquidation imbalance of 514% has also impacted long-term buy positions, driving the prevailing downtrend. Essentially, along with the technical incident, conditions are creating a more cautious future for DOGE in the near term. Dogecoin is also experiencing strong bearish signals as key technical levels begin to be broken and trading volume weakens. Although there may be a short term recovery, with the appearance of a death cross and the inability to maintain support, the market could decline further and prices could even be lower than at the beginning of 2023.