The Dogecoin price crashed in recent months, going from $ 0.4,840 in November to $ 0.20 today. He entered a deep bear market, and there is a risk that the downward trajectory will continue. Here are three reasons to sell Doge and move away.
The Dogecoin price has formed a death cross
The first main reason you should sell DOGE is that he formed a death cross on the daily graphic. In this, the weighted mobile average of 200 days and 50 days (WMA) formed a lowering crossing.
A cross of death is one of the most risky graphic models in technical analysis. The WMA indicator is more reactive than the exponential or simple mobile average because it focuses on the most recent data.
Worse, the price of Dogecoin has moved below the level of fibonacci retracement of 61.8%, which is generally considered to be the Golden point for withdrawals. The average directional index (ADX), a popular indicator that measures the strength of a trend, has increased to 42, indicating that the momentum can continue.
Tesla Stock Crash can see Musk Exit Doge
Dogecoin is a cryptocurrency that Elon Musk popularized. Its prize jumped at the end of last year after Donald Trump won the elections and appointed Musk as head of the Ministry of Government, also called Doge.
Musk’s involvement in Doge is one of the main reasons why Tesla’s share price fell $ 281 from last year, which was nearly $ 500. Indeed, analysts and investors think that it spends a lot of time in Doge and neglects Tesla.
Now, with the share scholarship and its net value has dropped $ 83 billion this year, there is a risk that it decides to leave Doge to refocus on Tesla. Such a decision would probably affect the Dogecoin price.
Extreme fear on the market
In addition, from a macro, the price of dogecoin can crash as a feeling of fear that lingers on the market. The CNN Money Fear and Greed index plunged into the 18 -year -old extreme fear area. Likewise, the Index for fear of crypto and greed moved to 35.
Risky assets like Dogecoin and other altcoins often plunge when there is a feeling of fear on the market. This also explains why Spot Bitcoin and Ethereum Ethers have had robust outings this week. Therefore, Doge and other altcoins can continue to fall in the short term.
Find out more: Top 3 Altcoins that could make you a crypto millionaire by 2030
Non-liability clause:
The information provided in this article is for information and education purposes only and must not be interpreted as financial or investment advice. Investments in cryptocurrency are very volatile and have a significant risk; Therefore, do your own research.