Dogecoin (DOGE) has recently exhibited a bearish trend, marking its first death cross on the four-hour chart. This technical indicator occurs when the short-term 50-period moving average falls below the long-term 200-period moving average, often signaling a decrease in momentum and the potential for further declines.
As of now, Dogecoin’s four-hour simple moving average (SMA) 50 is lower than the four-hour SMA 200, reflecting that short-term selling pressure is currently superseding demand. Following a significant drop from a peak of $0.287 on July 21 to a low of $0.1888 on August 3, Dogecoin has seen a slight uptick, trading at $0.2013 with a 1.15% increase in the last 24 hours. However, it remains caught between crucial daily SMAs of $0.196 and $0.203.
Historically, Dogecoin has been trading within a range of $0.14 to $0.29 for several months. The current flat Relative Strength Index (RSI) suggests that this range might continue for an extended period. A key focus will be the 50-day SMA at $0.196; if the price falls below this level, it could lead to a decline towards the next support point at $0.14. Conversely, achieving a close above the 200-day SMA at $0.208 could lead to a rally towards $0.26 and possibly $0.29.
Encouragingly, the accumulation of Dogecoin by large holders, known as whales, may indicate a bullish sentiment. Over the past 24 hours, this group has purchased more than one billion DOGE, valued at around $200 million at current rates. Such accumulation could reflect confidence in Dogecoin’s future performance.
As market conditions evolve, the outlook for Dogecoin will heavily depend on broader market sentiment and any signs of upward momentum that may emerge in the coming days.