Dogecoin Death Cross Looms: Will Bulls Save DOGE From a Major Crash?

Dogecoin is approaching a critical technical formation that could result in a sharp price decline if not reversed. The meme coin is on the verge of forming a death cross, with its nine-day moving average nearing a crossover below the 21-day moving average. This signal often indicates a potential shift into a bearish trend, raising concerns about an impending crash if bulls fail to step in.

According to the current price, Dogecoin has increased 0.7 percent over the past 24 hours and is now worth $0.2285. However, if you consider the trading volume, we find a much more concerning outcome. An 11.26 percent drop in volume, resulting in $1.17 billion, might have helped the ongoing downtrend.

Also Read: After Years of Waiting, XRP May Finally Be Ready to Skyrocket

Many traders are paying attention to the Relative Strength Index, which is now reading 57. Hence, the market is not showing signs of being overbought, and we might expect bullish movement to grow. If there isn’t a high number of buyers soon, the death cross might make the new downtrend stronger.

A drop in volume means investors are losing passion, giving the bearish pattern more scope to form. According to analysts, a confirmed death cross may wipe away recent gains and bring about a sharp market sell-off. Preserving critical support levels is essential for Dogecoin as we continue our analysis.

Buy Pressure Could Invalidate Bearish Pattern

Although the technical setup appears negative, the situation is not beyond recovery. The RSI shows there is potential for a reversal if bulls act swiftly. A rise in trading activity and a shift in sentiment could prevent the moving averages from crossing in a bearish direction.

Dogecoin bulls will need to increase their presence in the market to counteract the fading momentum. If trade volume rises again, it could inspire interest in DOGE and let it avoid the support zones from below.

As Dogecoin approaches the death cross, investors want to know if buyers are powerful enough to stop a significant slide. The next several days will decide how the coin moves in the short term.

A significant drop may occur with Dogecoin if the death cross appears and upside momentum does not appear. A turnaround could happen if investors buy in time and the market responds quickly.

Also Read: Ethereum Eyes $3K as Key Resistance Threatens to Stall Bullish Momentum

The post Dogecoin Death Cross Looms: Will Bulls Save DOGE From a Major Crash? appeared first on 36Crypto.