Dogecoin (DOGE) Faces Bearish Signal: Will the Price Drop Further?

Dogecoin (DOGE) could be heading for a price decline as signs of a death cross emerge on its charts. This bearish pattern occurs when a short-term moving average drops below a long-term one. In DOGE’s case, its 23-day and 200-day moving averages are on the verge of crossing, raising concerns about a potential sell-off.

If this bearish scenario plays out, DOGE could drop 26% to $0.18, its nearest support level. The worst-case scenario could see DOGE revisiting $0.13, marking a 40% decline from recent prices and a 72% fall from its local peak.

However, markets often price in such technical indicators in advance. If this is the case, the death cross could signal a price bottom, trapping bearish traders. Some analysts suggest DOGE might stabilize or even rebound post-crossover.

Despite this uncertainty, Dogecoin remains the most popular meme cryptocurrency, continuing to attract hype. With speculation around a major partnership announcement in March, the coin may yet regain momentum. Additionally, its connection to SpaceX’s lunar mission keeps it in the spotlight, fueling optimism for a future rally.

For now, DOGE traders should remain cautious, watching price action closely. While the death cross is typically a bearish signal, market sentiment and external factors could still push Dogecoin in unexpected directions.

As the meme coin market evolves, DOGE’s future will depend on investor sentiment, broader crypto trends, and upcoming developments. Stay tuned for further updates on Dogecoin’s price movements.