DOGECOIN (DOGE), the best known cryptocurrency, is confronted at a critical moment in its price table because it can be on the edge of a cross of death. This technical signal, which drew significant attention from traders, suggests that Dogecoin could be directed to a potential price drop in the near future.
What is a cross of death?
A death cross occurs when a short -term mobile average crosses a long -term mobile average, signaling the potential of a downward trend. In the case of Dogecoin, the 23-day mobile average and the 200-day mobile average are about to cross, which indicates that cryptocurrency could be lowered on its price. For many investors, the death cross is considered a negative indicator, often preceding new price reductions.
Potential impact on the price of Dogecoin
If the death cross materializes, the Dogecoin price can increase to a crucial level of support around $ 0.18. This represents a significant drop of 26% compared to its current price. The next support area is at this price, which could prevent Doge from falling more. If the market conditions have worsened, the worst case could see Dogecoin revisiting its pre-november pump levels of about $ 0.13, signaling a drop of 40% compared to its recent levels and an amazing decrease of 72 % compared to its local peaks.
For Dogecoin holders, this is a worrying signal. With the growing possibility of a drop in value, many closely follow the situation to determine whether the cryptocurrency will experience additional drops or stabilization.
Could death mark the bottom?
However, there is a twist. Although the death cross is traditionally considered as a lower indicator, it is also possible that the market has already evaluated in this event. In other words, the crossing could mark the bottom of the Dogecoin price, and the cryptocurrency could start to stabilize or even feel a rebound once the crossing will occur. This phenomenon, often called “bears trap”, could lead to a surprising rebound for Doge.
Given the unpredictable volatility and nature of the cryptocurrency markets, it is difficult to say with certainty how Dogecoin will react. The market has seen various active people living death crosses, but so that they rally shortly after. Consequently, traders should be careful and not only count on this indicator to guide their decisions.
What to monitor to move forward
Merchants and investors are invited to remain vigilant and to monitor more than the death cross during decision -making about Dogecoin. The appearance of this technical model may not be enough to predict future price movements, in particular given the status of Dogecoin as a popular room which has drawn generalized attention.
Despite the concerns concerning the Cross of Death, Dogecoin remains one of the most publicized cryptocurrencies, maintaining a general public. This could play an important role in its future price action, because social media tendencies, mentions of celebrities and other market dynamics often influence its price movement. As the past shows, Dogecoin can feel sudden overvoltages when they are triggered by new favorable news or events, even in the midst of technical indicators pointing towards a downward trend.
In addition, Dogecoin enthusiasts impatiently anticipate the potential of the return medal, in particular with a major announcement of public relations scheduled for March. If the partnership or the announcement linked to this event changes the situation, it could offer Dogecoin the momentum it needs to reverse its trajectory downwards and once again attract market attention.
Conclusion
At present, the atmosphere surrounding Dogecoin is caution. While the Cross of Death suggests a lower perspective, the unpredictable nature of the market, as well as potential external catalysts, could run things. Traders must remain informed and monitor additional developments, because Dogecoin could either cope with a significant drop, or surprise the market with a rally. The next few weeks will be crucial to determine the future of this widely recognized cryptocurrency.
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