Dogecoin price has been fluctuating within the narrow range of between $0.19 and $0.21 in the past two days. However, DOGE may now be on the verge of a massive 42% price decline after a bearish pattern emerged. As the broader market continues to face a massive pullback, how low can Dogecoin price go?
At press time, Dogecoin price trades at $0.205 with a marginal 0.3% drop in 24 hours.
Dogecoin Price at Risk as Death Cross Approaches
Dogecoin price has been defending a crucial support level at $0.19 despite a lack of fresh demand. However, DOGE is facing an imminent crash if it confirms a death cross on its daily chart.
The 50-day Exponential Moving Average is tipping south and nearing a crossover with the 200-day EMA. If DOGE confirms this bearish crossover, it could fuel a notable price drop. The last time that Dogecoin faced a death cross, the price plunged by 42%. If this were to happen again, Dogecoin price could extend its decline to $0.11.
The RSI at 38 shows a lack of buying momentum to defend the current support level. This raises the chances of the meme coin extending its decline if the bearish sentiment in the broader crypto market continues.
Dogecoin Sheds Over $3B in Open Interest
Dogecoin has also witnessed a staggering decline in open interest after shedding more than $3 billion in less than two months. DOGE’s open interest hit a peak of $5.42 billion in mid-January, but it has since dropped to $1.81 billion according to Coinglass data.
This rapid decrease in open interest shows risk aversion among Dogecoin traders as they fail to open new positions. However, this decline could also give the Dogecoin price a chance to recover. After the many open positions were forcefully closed due to recent price fluctuations, the reduced leverage could give room for a more natural recovery.
Analyst Predicts Dogecoin Price Recovery Despite Bearish Trends
Despite the recent downtrend, one crypto market analyst has provided a bullish Dogecoin price prediction, and forecasted that the meme coin could soon rally to a record high. According to Solberg Invest, DOGE was testing a crucial support level, and if it bounces, it could spark a recovery towards $0.82.
Dogecoin could only make an independent rally to an ATH if there are catalysts such as an ETF approval or a massive endorsement. However, with neither of these factors at play, a Dogecoin price recovery is largely dependent on how the broader market performs.
The post Dogecoin Price Risks 42% Crash as Death Cross Looms appeared first on CoinGape.
