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The outlook for Dogecoin appears challenging, with technical indicators suggesting a potentially bearish trend. Over the past month, DOGE has experienced a decline of approximately 18%, and its price is now trading below significant long-term moving averages. This price action has formed a pattern often referred to as a "death cross," which many traders interpret as a warning sign of further downward pressure.

As of June 16, the price of the meme coin has decreased from slightly above $0.20 to below $0.17. It is currently hovering just above a crucial support level at $0.137, a level last observed in early April. Should the price breach this support, it could trigger another decline, potentially of around 20% from current levels, and test the $0.13 region.

The weekly chart is contributing to trader caution. The 23-week moving average has now crossed below the 50-week moving average, forming the aforementioned death cross.

While not an exceedingly rare occurrence, the death cross still carries significance, particularly for sentiment-driven assets like Dogecoin. Historically, similar patterns have indicated medium-term weakness and the potential for more substantial corrections.

Currently, the $0.137 level warrants close attention, as it aligns with the 200-day moving average on the weekly timeframe.

If DOGE manages to rebound from this level, it could potentially initiate a short-term relief rally. However, a breakdown of this support zone could result in accelerated losses, potentially driving the price back to levels not witnessed since early 2023.

With sentiment surrounding meme coins waning and the broader cryptocurrency market still seeking stability, Dogecoin may be entering a period of considerable testing. The situation is evolving beyond mere speculation, presenting a genuine evaluation of its long-term viability. Read original article on U.Today