Major meme cryptocurrency Dogecoin (DOGE) may see its price dropping in the near future. At least at such a possibility signal early signs of a death cross on its price chart.
For those not familiar, a death cross happens when a short-term moving average crosses below a long-term moving average. In DOGE’s case, its 23-day moving average and 200-day moving average are about to cross each other.
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If the bad scenario comes into reality, the price of DOGE may drop to as low as $0.18, where the nearest strong support level is located. This would mean a 26% drop from the current price point for DOGE.
The worst scenario, however, is for Dogecoin to revisit the pre-November pump levels at around $0.13 for DOGE. This would mean about a 40% price drop for Dogecoin from recent price levels, and 72% down from local peaks.
Now, here’s the twist. There’s a chance the market has already factored in this death cross, and its appearance could actually mark the bottom for Dogecoin. In other words, it might turn out to be a trap for the bears, with the price stabilizing or even bouncing back once the crossover happens.
It’s a tricky situation, and traders would do well to keep an eye on more than just this one indicator.
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For now, though, the mood is cautious. Dogecoin still is the most hyped meme coin despite the oversaturation of this segment of the crypto market, and definitely will have its minute of fame once again.
Maybe when it finally lands on the Moon with the SpaceX mission?
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