Dogecoin drops over 30% from its yearly high of $0.48

Dogecoin Price Dives Below $0.33 Amidst Bearish Signals

Dogecoin (DOGE) has experienced a significant decline, plummeting over 30% from its yearly peak of $0.48 earlier this month. This downturn is attributed to several bearish indicators that suggest the price could continue to drop in the coming months.

Technical indicators indicate that DOGE faces the prospect of falling below $0.20.

Key Bearish Patterns

The DOGE/USD daily chart has witnessed the emergence of a critical bearish pattern known as the "Death Cross." This pattern occurs when a short-term moving average, such as the 50-day moving average, crosses below a long-term moving average, such as the 200-day moving average. The crossover on December 18 triggered a price drop of approximately 20% for DOGE, signaling a shift in market sentiment from bullish to bearish.

Weakening Trend

The recent price declines have eroded any previous long-term gains, indicating a weakening trend. The Super Trend Indicator for DOGE highlights that the price remains below the red line, suggesting persistent selling pressure.

Support and Resistance Levels

DOGE is currently trading below $0.33. If selling continues, the price may slide towards $0.28. Should this support level fail to hold, the next significant support level to monitor is at $0.23.