The price of Dogecoin (DOGE) has fallen more than 30% from its annual high of $0.48 at the beginning of this month. This decline is associated with several bearish signals, which are increasing the likelihood of further price declines.
As the year-end approaches, the downward pressure is increasing. Technical indicators suggest that the DOGE price could fall below $0.20. The reasons are as follows.
Dogecoin, Bearish Pattern Risk
A "death cross" pattern has formed on the DOGE/USD daily chart. This is a bearish pattern that forms when an asset's short-term moving average (typically the 50-day moving average) crosses below its long-term moving average (typically the 200-day moving average). This suggests that market sentiment has shifted from positive to negative.
According to the chart readings, DOGE's 50-day moving average crossed below the 200-day moving average on December 18th. Since then, the price of Dogecoin has declined by 20%. This crossover is a bearish signal, suggesting a bearish trend that has recently outweighed the long-term price increase.
Furthermore, the downward reading of DOGE's Super Trend indicator confirms the possibility of further declines. At the time of writing, the DOGE price is below the red line of this indicator.
The Super Trend indicator tracks the overall direction and strength of an asset's price. It is represented as a line on the price chart, and its color changes to reflect the trend direction: red for downtrend, green for uptrend. When an asset's price is below the Super Trend line, it indicates a downtrend, suggesting the possibility of continued bearish momentum.
DOGE Price Forecast, Meme Coin Eyed Below $0.20
On the daily chart, DOGE is trading below the $0.33 resistance level. Sustained selling pressure at this level could pull the price down to the $0.28 support level.
If this support level fails, DOGE's next major level is $0.23. If buying pressure fails to defend this level, the meme coin could slide below the $0.20 zone and reach $0.17.
On the other hand, if DOGE successfully breaks above the $0.33 resistance level, it could head towards the annual high of $0.48.
