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Dogecoin (DOGE) price has dropped more than 30% from its yearly high of $0.48 earlier this month. This decline is linked to multiple bearish signals, increasing the likelihood of further price declines.
With the year drawing to a close and bearish pressure mounting, technical indicators point to a further decline in DOGE price, possibly slipping below $0.20. Here’s why.
Dogecoin’s Bearish Price Model Puts It at Risk
A “Death Cross” pattern has formed on the one-day DOGE/USD chart. This is a bearish pattern where an asset’s short-term moving average (usually the 50-day moving average) crosses below its long-term moving average (usually the 200-day moving average), suggesting a bearish trend. shift in market sentiment from positive to negative.
According to data from the DOGE/USD chart, on December 18, DOGE’s 50-day MA crossed below the 200-day MA, and the meme coin price has dropped 20% since then. This crossover is a bearish signal, indicating a weakening trend, as recent price declines outweigh long-term price increases.
Furthermore, bearish readings from DOGE’s Super Trend indicator confirm the possibility of further price declines. At the time of writing, DOGE price is still below the red line of this indicator.
The Super Trend Indicator tracks the overall direction and strength of an asset’s price trend. It appears as a line on the price chart that changes color to reflect the trend direction: red for a downtrend and green for an uptrend. When the asset’s price appears below the Super Trend line, indicating a downtrend, it suggests that the bearish momentum is likely to continue.
DOGE Price Forecast: Meme Coin Heads Below $0.20 USD
On the daily chart, DOGE is trading below resistance at $0.33. Sustained spikes in selling pressure at this level could push the price down to the $0.28 support zone.
If this support fails to hold, the next key level for DOGE lies at $0.23. If the bulls cannot defend this level, the meme coin could slide below the $0.20 area, potentially touching $0.17.
Conversely, if the $0.33 resistance level is overcome, DOGE could approach the year’s high of $0.48.
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