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Dogecoin's slow decline might be heading into technical trouble. As of this week, $DOGE is trading at just over $0.107 - barely holding above the Oct. 10 dump level of $0.0995, when $40 billion at least were liquidated in margin positions across the crypto market.
What's more concerning is what's developing above: a double death cross configuration between the 23-week and 50-week simple moving averages (SMA), both on track to cross below the long-term 200-week exponential moving average (EMA). This kind of double punch on the TradingView chart is usually not ignored by market technicians, especially when it looks this clean on a weekly chart.
The red EMA200 line is currently at $0.15322 per $DOGE, and the 23-SMA and 50-SMA are trending down at $0.17215 and $0.18505, respectively. These levels are all coming together in an area that a lot of crypto traders are watching closely.
The rescue plan for $DOGE
If Dogecoin does not break decisively higher, it might enter a period of chaotic volatility. The orange circle on the chart shows this danger zone, which is expected to be triggered within the next few candles - possibly as soon as late February.
In the past, when a single death cross happened, it usually led to a 15-30% drop in meme coin cycles. A double cross this close to multimonth lows makes that threat much worse. Some are saying that the $0.09-$0.11 support band might not hold if the bulls do not get back at least $0.153 in the next few weeks.
Unless there is a big jump in volume or a big whale steps in to change things, the double death cross might be $DOGE's toughest rival this year.