Saad Ullah
Things aren't looking great for Dogecoin right now. The meme coin has dropped hard over the past month, falling nearly 18% and breaking below some key technical levels that traders really don't want to see broken.
DOGE has tumbled from over $0.20 down to below $0.17 as of June 16th. Right now, it's barely holding above the crucial $0.137 support level - the same spot we saw back in early April. If that level breaks, we could see another nasty 20% drop that takes DOGE down to test the $0.13 area.
DOGE (Dogecoin) Death Cross Spells Trouble Ahead
The weekly chart is what's really got traders worried. We're seeing a classic "death cross" formation where the 23-day moving average has crossed below the 50-week moving average. This isn't some rare unicorn pattern, but it definitely carries weight - especially for sentiment-driven coins like Dogecoin.
History shows us that when this setup appears, it usually means more pain is coming. Previous cycles have seen similar death crosses lead to medium-term weakness and bigger corrections down the road.
The key battleground is that $0.137 support where the 200-day moving average sits on the weekly chart. This is make-or-break territory for DOGE.
Dogecoin (DOGE) Could Test Early 2023 Lows
If Dogecoin bounces from $0.137, we might get a short relief rally. But if this support crumbles, things could get ugly fast. We're talking about a potential drop back to price levels not seen since early 2023 - that's a long way down from here.
The broader picture isn't helping either. Meme coins have been cooling off lately, and the crypto market is still trying to find its feet. For a coin that runs on hype and sentiment like DOGE, this kind of environment is pretty brutal.
What we're seeing isn't just another dip - it's a real test of whether Dogecoin can hold its ground when the going gets tough. The technical setup suggests we might be in for some choppy waters ahead.
Bottom line: Watch that $0.137 level like a hawk. A break below opens the door to much bigger losses, while a bounce could give bulls some breathing room. Either way, the next few days are going to be crucial for DOGE's direction.
Saad Ullah
