Dogecoin death cross forms: Why this is a worrying development

Dogecoin's Bearish Momentum Tests $0.102 Support

Dogecoin (DOGE) has been trending bearishly over the past ten days. The rejection from daily moving averages, including the $0.141 resistance level, has solidified bearish momentum.

Death Cross Risk Looms

The potential formation of a Death Cross, where the 200-day and 100-day moving averages cross to the downside, represents a significant bearish signal. This could further suppress Dogecoin's bullish prospects.

Bearish Indicators

The Relative Strength Index (RSI) has dropped below the neutral 50 level, indicating a lack of buying pressure. The On-Balance Volume (OBV) has also resumed a downtrend, confirming bearish price action.

Mixed Sentiment

While social media engagement is bullish, as evidenced by a positive Weighted Sentiment, other metrics point to network stagnancy. The dormant circulation and mean dollar invested age have both seen increases, suggesting that old tokens are remaining inactive while new investments are limited.

Support at $0.102

Technical analysis suggests that Dogecoin is likely to test the $0.102 support level in the coming days. If this level breaks, further downward movement is possible.

Conclusion

Dogecoin's bearish momentum and potential Death Cross formation highlight the short-term challenges it faces. However, the mixed sentiment and network stagnancy could indicate a potential for a bull run once bearish pressures subside.