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Dogecoin (DOGE) Price Recovery Threatened by Potential Death Cross

2 mins
Updated by Ryan James
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In Brief

  • Dogecoin's price is close to noting a death cross, which could trigger a substantial correction in the meme coin.
  • The broader market cues are also turning bearish, with the MACD on the verge of observing a bearish crossover.
  • Nearly 12.46 billion DOGE is sitting in the $0.15 to $0.14 range, which will bear $1.8 billion worth of losses.
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Dogecoin (DOGE) is sitting in a crucial position, and losing it could cause considerable losses to investors. 

The broader market is becoming increasingly bearish, so DOGE may find it hard to prevent a drawdown.

Dogecoin Investors May Witness Losses

At the time of writing, Dogecoin’s price is trading above a crucial support loss, which could result in a potential death cross. The crypto market is cooling down from the recent rally, and this impact can be seen across digital assets.

The Moving Average Convergence Divergence hints at the same. (MACD) is a trend-following momentum indicator that identifies trend changes by comparing two moving averages of an asset’s price. 

The indicator observes the formation of a potential bearish crossover with the green bars on the histogram declining. This suggests that bullishness is receding even though the past week was the first instance of optimism in the past month.

Dogecoin MACD.
Dogecoin MACD. Source: TradingView

Generally, when the market does not support a recovery, investors tend to be the saviors of an asset. However, this is not the case with DOGE since investors will likely opt to step back.

This is because, as noted on the Global In/Out of the Money (GIOM) indicator, about 12.48 billion DOGE bought between $0.13 and $0.15 will lose profitability if Dogecoin’s price falls. This $1.8 billion worth of supply becoming turn loss-bearing will potentially incentivize investors to HODL until gains are visible.

Read More: Dogecoin (DOGE) Price Prediction 2024/2025/2030

Dogecoin GIOM.
Dogecoin GIOM. Source: IntoTheBlock

Thus, this would affect their participation, which in turn will slow down any chances of recovery Dogecoin may have.

DOGE Price Prediction: The Last Ray of Support

Trading at $0.14, Dogecoin’s price is sitting above a key support level, which has been tested multiple times in the past. Falling through this crucial support in the past has resulted in a drawdown to the $0.12 support level.

The Exponential Moving Averages (EMA) are forming a potential death cross. A death cross is a bearish technical pattern where a short-term 50-day EMA crosses below a long-term 200-day EMA. This indicates a potential downtrend continuation.

Read More: How To Buy Dogecoin (DOGE) and Everything You Need To Know

Dogecoin Price Analysis.
Dogecoin Price Analysis. Source: TradingView

Consequently, DOGE could fall to $0.12 support and, in the process, result in $1.8 billion worth of losses as well.

However, if Dogecoin’s price returns from the $0.14 support, it could note a recovery beyond $0.15. This would invalidate the bearish thesis and make the 12.48 billion DOGE profitable again.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Aaryamann Shrivastava
As a Mass Media (Journalism) graduate, my journey into cryptocurrency journalism has evolved into a distinguished role as an On-Chain Analyst over the past two and a half years. Collaborating with industry-leading media companies like FXStreet, AMBCrypto, and FXEmpire, I’ve delved deeply into the intricate realms of Crypto and Blockchain, crafting over 2,500 meticulously curated SEO-focused articles. Driven by a commitment to excellence, I remain steadfast in delivering the highest caliber...
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