Dogecoin (DOGE) has faced significant downward pressure recently, resulting in massive losses for holders. As the price struggles to maintain key support levels, DOGE’s downtrend is exacerbated by a potential Death Cross, marking a shift in market sentiment that could push the altcoin even lower.
With market conditions growing more bearish, DOGE could lose support at $0.20, signaling further challenges ahead.
Dogecoin Whales Offload In Bearish Anticipation
The key technical indicator to watch is the impending Death Cross, where the 200-day exponential moving average (EMA) is on track to cross below the 50-day EMA. This marks the first Death Cross in 8 months, ending a 5-month bullish streak for Dogecoin.
If the cross happens, it could signal the start of a more prolonged bearish trend, as traders typically view this pattern as a sign to sell. The potential formation of the Death Cross has already impacted investor behavior.
Whale investors, who hold large amounts of DOGE, have reacted swiftly to the increasing bearishness. Over the past 48 hours, addresses holding between 100 million and 1 billion DOGE have sold a staggering 2 billion DOGE, worth over $400 million.
The sharp sell-off by whale investors highlights the growing uncertainty regarding Dogecoin’s recovery. With many major holders exiting the market, Dogecoin’s ability to regain upward momentum seems increasingly unlikely. As large market participants retreat, smaller retail investors could follow suit, adding to the selling pressure and further lowering the price.
DOGE Price Is On A Ledge
Dogecoin is currently trading at $0.20, attempting to hold above the support level of $0.19. Despite efforts to maintain stability, the overall market conditions suggest that a further decline could be in the cards. With the looming Death Cross and growing selling pressure, DOGE might struggle to maintain its current support levels.
If Dogecoin fails to hold the $0.19 support, it could likely fall to test the next major support at $0.17. Historically, DOGE has shown resilience around this price level, which could allow it to consolidate before attempting a rebound. However, a further decline could result in deeper losses if $0.17 is breached.
The only way to reverse the bearish outlook is for Dogecoin to rise above the $0.22 barrier, which has acted as resistance in recent weeks. Successfully breaking and flipping this level into support could open the path for a rise toward $0.26.
If Dogecoin can secure this level of support, the altcoin may reach $0.31, marking a near 53% rise. This would allow it to recover most of its recent losses and shift the trend back to bullish.
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