Death Cross of Dogecoin is Appearing: Can Buyers Save DOGE from a Major Collapse?

Dogecoin is approaching an important technical formation that could lead to a strong price fall if not reversed. This meme coin is on the verge of forming a death cross, with its nine-day moving average close to crossing below the 21-day moving average. This signal often indicates a potential shift to a bearish trend, raising concerns about an impending collapse if the buyers do not step in. According to the current price, Dogecoin has increased by 0.7 percent in the last 24 hours and is currently valued at 0.2285 dollars. However, if you consider the trading volume, we see a much more concerning result. The volume has fallen by 11.26 percent, leading to 1.17 billion dollars, which may have contributed to the ongoing bearish trend. Many traders are paying attention to the Relative Strength Index, which is currently at 57. Therefore, the market shows no signs of being overbought and we can expect the bullish move to increase. If there are not many early buyers, the death cross could make the downtrend stronger.

A decrease in trading volume means that investors are losing their enthusiasm, creating conditions for a bearish pattern to form more. According to analysts, a confirmed death cross could wipe out recent gains and trigger a strong sell-off in the market. Maintaining key support levels is essential for Dogecoin as we continue our analysis. Buying Pressure Can Diminish the Bearish Model Although the technical setup seems bearish, the situation is not beyond recovery. The RSI indicates a potential reversal if the buyers act quickly. Increased trading activity and a change in sentiment may prevent the moving averages from crossing in a downward direction. Dogecoin speculators will need to strengthen their presence in the market to counter the weakening trend. If trading volume increases again, this could spark interest in DOGE and help it avoid support levels from below. As Dogecoin approaches the death cross, investors want to know if buyers are strong enough to prevent a significant price decline. The coming days will determine how this coin will move in the short term. There could be a significant fall with Dogecoin if a death cross occurs and no upward momentum appears. A reversal may happen if investors buy in time and the market reacts quickly.