The price of Dogecoin (DOGE) has fallen more than 30% from its yearly high of $0.48 earlier this month. This decline is associated with numerous bearish signals, increasing the likelihood of further price declines.
As the year draws to a close and bearish pressure intensifies, technical indicators point to further declines in the price of DOGE, possibly dipping below $0.20. Here’s why.
Dogecoin’s bearish nature puts it at risk
A “Death Cross” pattern has formed on the one-day DOGE/USD chart. This is a bearish pattern that forms when an asset’s short-term moving average (often the 50-day moving average) crosses its longer-term moving average (usually the 200-day moving average), indicating a change in market sentiment from positive to negative.
DOGE/USD chart readings showed that DOGE’s 50-day MA crossed below its 200-day MA on December 18th, and since then the price of the meme coin has dropped 20%. This crossover is a bearish signal, suggesting a weakening trend as recent price declines outweigh long-term price gains.
Moreover, DOGE’s bearish Super Trend indicator confirms the possibility of further declines. At the time of writing this article, the DOGE price is below the red line of this indicator.
The Super Trend indicator tracks the overall direction and strength of asset price trends. On a price chart, it looks like a line that changes color depending on the direction of the trend: red for a downtrend and green for an uptrend. When an asset’s price is below the supertrend line, it indicates a downward trend, suggesting bearish momentum is likely to continue.
DOGE: Meme Coin Eyes Price Prediction to $0.20
On the daily chart, DOGE is trading below resistance at $0.33. Continued bouts of selling pressure at this level could push the price down to support at $0.28.
If this support fails, the next key DOGE level would be at $0.23. If bulls fail to defend this level, meme coin could fall below the $0.20 zone, potentially reaching $0.17.
On the other hand, a successful break of the $0.33 resistance level could push DOGE towards the yearly peak of $0.48.
