TLDR
- Dogecoin’s price dropped from $0.2889 to $0.2631 amid market pressure.
- A death cross formed when short-term moving averages fell below long-term ones.
- Grayscale seeks to convert Dogecoin trust into an ETF, increasing exposure.
- Dogecoin’s treasury added 100 million DOGE, raising total holdings to 600 million.
Dogecoin has recently entered a concerning phase as its price falls into a “death cross” pattern on short-term charts. This technical indicator suggests potential bearish market movement. The price drop from $0.2889 to $0.2631 has raised questions about the cryptocurrency’s short-term future. Despite this, experts advise keeping an eye on several key factors that could influence Dogecoin’s direction in the coming days. Here’s a closer look at what investors should watch for.
Understanding the Death Cross and Its Meaning
A “death cross” is a technical pattern that occurs when a short-term moving average (MA) crosses below a long-term moving average, indicating potential bearish market conditions. For Dogecoin, this cross formed on the hourly chart after the cryptocurrency experienced significant selling pressure.
The price of Dogecoin dropped sharply from $0.2889 on Thursday to a low of $0.2631 by Saturday, confirming the bearish trend. This is the second time in recent weeks that Dogecoin has fallen below its key hourly moving averages, marking the creation of the death cross. As of now, DOGE has slightly rebounded, showing a 0.6% increase in the past 24 hours, but is still down by 5.46% over the last week.
Key Levels to Watch for Short-Term Movement
Dogecoin’s price action will be closely monitored for signs of recovery. The immediate focus is on two crucial price levels: $0.267 and $0.274. If Dogecoin manages to rise above these levels, it could potentially move toward higher price points like $0.288 and $0.307.
However, if the price fails to break through these levels, there is a risk of further downward movement. Support is expected to be around $0.2568, which is the next key level if the price continues to fall. Traders and analysts are closely watching whether DOGE can reclaim the $0.274 mark to avoid further declines.
Impact of Market Events and Institutional Moves
Several events have occurred recently that could influence Dogecoin’s future. One major development was Grayscale’s recent filing to convert its closed-end Dogecoin trust into an ETF, which could provide more exposure for DOGE on major exchanges. If approved, this ETF would be listed under the ticker GDOG on NYSE Arca. This could lead to increased institutional interest in Dogecoin, potentially lifting the price.
Another notable development is the recent launch of DOJE, the first exchange-traded fund in the U.S. offering direct exposure to Dogecoin. According to Bloomberg ETF analyst Eric Balchunas, the fund had an impressive start, raising $17 million within its first 24 hours. This launch indicates growing interest in DOGE, despite its current price struggles.
Dogecoin’s Treasury and Market Sentiment
Despite the recent price drop, Dogecoin’s long-term prospects may be influenced by ongoing developments within its treasury. Earlier this week, Cleancore Solutions, a company managing Dogecoin’s treasury, added 100 million DOGE, bringing its total holdings to over 600 million DOGE. This addition highlights the continued accumulation of Dogecoin, suggesting confidence in its potential future value.
Market sentiment surrounding Dogecoin remains volatile, as seen in the recent price fluctuations. While some are optimistic about potential future gains, others remain cautious due to the current bearish indicators. Investors will need to monitor both price action and any major announcements related to Dogecoin’s ecosystem to gauge its short-term direction.
