Especially new investors in cryptocurrencies show more interest in meme coins compared to others. The reason is quite clear: meme coins are among the most volatile assets where they can achieve quick and high profits. Leading the meme coins is DOGE. In the last rise, DOGE, which was right behind WIF Coin, saw a quick recovery.
Dogecoin (DOGE)
Meme coins create very exciting candles as they head towards bull peaks. However, during decision periods, they fluctuate between rapid losses, quick gains, and narrow-range consolidation. DOGE achieved quick gains but couldn’t maintain them and dropped below $0.14 with the BTC decline.
There is a significant risk for DOGE, which becomes evident in the chart. The SMA50 crossed below the SMA200. Investors familiar with basic technical analysis know this indicates a “death cross,” warning of intensified declines.
In the short term, this structure suggests that the price increase is weakening and may start a rapid downtrend. Often, this situation has led to double-digit losses. If the BTC price does not see a quick recovery, we might witness days of accelerating decline for DOGE. Contrary to the positive divergence in the rise, we are talking about a setup that could highlight the risk of negative divergence in the fall.
Will DOGE Price Drop?
The Awesome Oscillator still indicates that the bulls are in control. On the other hand, the Chaikin Money Flow (CMF) indicator also confirms that capital inflow is in favor of the bulls. Both indicators support the continuation of the current rally. However, the death cross still holds its place on the chart, and DOGE bulls don’t have much time to reverse it.
Considering BTC’s current state at the time of writing, the potential for the ETH ETF launch to turn into a sell-the-news event should not be underestimated. Today, Grayscale’s ETHE volumes will be decisive for market sentiment.
If the bearish scenario occurs, the DOGE price could drop to $0.12. This also has targets of $0.09 and $0.08. Conversely, in the rise, $0.14 turns into support, and a new attempt at $0.18 is expected. This indicates the potential to remove the obstacle in front of $0.23.
