Dogecoin, star of memecoins, is approaching a “Death Cross” weekly for the first time since 2023. This rare signal and synonymous with a bearish trend, raises a question: sell or bet on a return to favor? Technical analysis and crypto outlook.
In brief
- Dogecoin could validate a Death Cross on its weekly curve, a rare bearish signal since 2023.
- Previous Death Crosses have led to stagnation, but the context this time is different.
- Crypto investors need to keep their eyes open between the risk of a fall and the possibility of a rebound.
Dogecoin faces a weekly Death Cross
Dogecoin (DOGE) is close to forming a weekly Death Cross for the first time since February 2023, a technical crossover where the 50-week moving average (50 WMA) crosses below the 200-week moving average (200 WMA). This signal, often synonymous with a long-term bearish trend, is all the more rare as DOGE has only experienced three of them since 2021, two of which were Golden Crosses or bullish crosses. In 2023, the last Death Cross had trapped the price of Dogecoin which remained stuck between 0.07 and 0.10 dollars, without a sudden crash.
But this time, the situation is different. Indeed, at $0.074 DOGE is already below the two moving averages, which could amplify the impact of the signal. This crossover is therefore closely monitored by crypto traders, because, if confirmed by high volume, it could trigger a wave of selling. However, Dogecoin has often defied the odds. Its history shows that Golden Crosses have always preceded explosive rallies. So, will this Death Cross be different?
DOGE: what if the Death Cross became a Golden Cross?
Some crypto investors are counting on a spectacular rebound in Dogecoin, despite the Death Cross causing concern. After all, DOGE has already proven itself in the technical logic challenge:
- In 2021, a Golden Cross increased its price from $0.02 to $0.74 in three months, an increase of 3,600%;
- In 2024, a similar scenario occurred again, with a 100% increase after a bullish crossover.
Today, although the signal is bearishexternal catalysts are likely to reverse the trend. A tweet from Elon Musk, a major integration, or even a rise in bitcoin could reignite enthusiasm. Some analysts are even counting on a new ATH in case Dogecoin manages to cross the resistance of $0.12. However, you must remain cautious. The crypto market is volatile and unpredictable, and a Death Cross, although it has had little impact in the past, could this time mark the start of a deeper correction.
Dogecoin is at a technical crossroads. Between the Death Cross and a potential rebound, crypto investors are hesitant. What is certain is that with DOGE, the story is never the same twice. And you, are you betting on the fall or the rebound?
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