Dogecoin (DOGE) recently faced a significant drop pressure, resulting in massive losses for holders. While the price is struggling to maintain key support levels, the downward tendency of Doge is exacerbated by a potential death cross, marking a change of feeling of the market which could push the Altcoin even lower.
The increasingly lower and DOGE market conditions could lose support at $ 0.20, which reports other challenges to come.
Dogecoin whales are discharged in lower anticipation
The key technical indicator to monitor is the imminent death cross, where the 200 -day exponential mobile average (EMA) is on the right track to cross the EMA of 50 days. This marks the first death of death in 8 months, ending a 5 -month upward sequence for Dogecoin.
If the cross occurs, this could point out the start of a more prolonged downward trend, as traders generally consider this model as a panel for sale. The potential training of the Cross of Death has already had an impact on the behavior of investors.
Whale investors, who hold large amounts of Doge, reacted quickly to the increase in lowering. In the last 48 hours, the addresses holding between 100 and 1 billion Doge have sold an astonishing Doge, worth more than $ 400 million.
The net sale of whale investors highlights the growing uncertainty concerning the resumption of Dogecoin. With many major holders leaving the market, Dogecoin’s ability to take up the momentum seems to be more and more unlikely. As the major market players withdraw, small retail investors could follow the plunge, adding to the sale pressure and further reducing the price.
Doge Price is on a edge
Dogecoin is currently negotiated at $ 0.20, trying to maintain above the level of support of $ 0.19. Despite efforts to maintain stability, the overall market conditions suggest that a new decline could be in the cards. With the cross of imminent death and increasing sales pressure, Doge could find it difficult to maintain its current support levels.
If Dogecoin does not hold the support of $ 0.19, it could probably fall to test the next major support at $ 0.17. Historically, DOGE has shown resilience around this price level, which could allow it to consolidate before trying a rebound. However, a new drop could cause deeper losses if $ 0.17 is raped.
The only way to reverse the lowering perspectives is that Dogecoin exceeds the barrier of $ 0.22, which has acted as resistance in recent weeks. The successful breaking and reversal of this level could open the way for an increase to $ 0.26.
If Dogecoin can guarantee this level of support, Altcoin can reach $ 0.31, marking an increase of almost 53%. This would allow him to recover most of his recent losses and to return the upward trend.
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