Dogecoin Completes First Death Cross in August, What's Coming?

Dogecoin ($DOGE) has just completed its first bearish crossover in August, forming a death cross pattern on its four-hour chart. The signal, which comes when the short-term 50-period moving average falls below the long-term 200-period moving average, is commonly interpreted as an indication of declining momentum and potential further downside.

In the case of Dogecoin, the four-hour simple moving average (SMA) 50 has dropped below the four-hour SMA 200, indicating that short-term selling pressure is outweighing demand. $DOGE has been under pressure in recent weeks, unable to maintain upward momentum amid a broader market sell-off spurred by macroeconomic concerns.

Dogecoin declined from a high of $0.287 on July 21 to a low of $0.1888 on Aug. 3 to begin the month on a shaky note.

Dogecoin is currently trading at $0.2013, up 1.15% in the previous 24 hours. Despite a modest recovery, Dogecoin's price is caught between its daily SMA 50 and 200 at $0.196 and $0.203, respectively, and trading below its four-hour simple moving averages.

What's coming?

Dogecoin has been trading inside a broad range between $0.14 and $0.29 for several months. The flat RSI in the negative territory indicates that the rangebound action could persist for some time. A break and close below the 50-day SMA at $0.196 might send the $DOGE price tumbling to the important support level at $0.14.

The first sign of strength will be a close over the 200-day SMA at $0.208; Dogecoin may then move to $0.26 and, eventually, $0.29.

Dogecoin has recently seen a surge in accumulation by large holders, commonly known as whales. According to crypto analyst Ali, this class of holders has collectively bought more than one billion $DOGE in the last 24 hours, translating to roughly $200 million at current prices.

Continued whale accumulation might be considered bullish as it signals conviction. Eyes will also be on broader market sentiment to determine Dogecoin's next price move.