Dogecoin Faces Death Cross as Price Drops Under $0.20

Dogecoin has dropped below $0.20, breaking key support levels that kept it steady before. The coin now appears weak as overall market confidence declines. Technical indicators indicate that the selling pressure may drive the price lower in the near term.

Whale Activity Adds to Market Pressure

Dogecoin’s chart has grown increasingly bearish after forming a Death Cross. This pattern often marks the transition from bullish momentum to prolonged weakness. The last occurrence was in late 2022 and was followed by several months of muted trading activity.

Data from Santiment shows that large holders have begun reducing their exposure. Over the past week, wallets holding between 10 million and 1 billion DOGE have offloaded more than 1 billion tokens, with a total value of about $180 million. The selling began slowly but picked up pace after October 27, as volatility on major exchanges increased.

Whales remain key drivers of Dogecoin’s price behavior. Their actions often influence market sentiment, encouraging smaller traders to react in the same direction. Analysts at CryptoQuant note that similar patterns have previously led to broader declines in DOGE’s market cycles.

Some investors think whales may be moving funds into stronger assets like Ethereum or Solana. However, the timing of these sales, along with the bearish signals, suggests a more careful withdrawal rather than routine portfolio changes.

Technical Pressure on Key Support Levels

Dogecoin is currently trading around $0.187, just above its nearest support level. If it falls below this range, the next short-term targets could be $0.175 and $0.165. The Relative Strength Index is nearing oversold levels, which may encourage short-term traders to enter for a bounce.

Technical signals alone do not capture the full picture. Dogecoin often responds to external factors like social media activity, exchange listings, or shifts in Bitcoin’s dominance. Currently, there are no clear positive triggers, so DOGE could continue its downward drift.

Still, if it rises above $0.20 and holds past $0.209, it would temporarily invalidate the Death Cross, indicating that bearish pressure may be easing. For now, however, the outlook still favors further declines.

Broader Market Context to Consider

Dogecoin is facing challenges due to broader market uncertainty. Bitcoin’s sideways trading has reduced interest in speculative tokens, while recent ETF inflows have mainly benefited large-cap coins. As money moves to safer options, Dogecoin sees lower liquidity.

At the same time, altcoins with real-world uses or layer-2 solutions are doing better than meme coins. The market is favoring tokens with real value, leaving Dogecoin vulnerable to fading hype. This does not mean the project has no potential, but narrative-driven coins often struggle when excitement fades.

In the past, Dogecoin has often rebounded after downturns once attention and liquidity return. A recovery could happen if Bitcoin strengthens or if DOGE gains focus through community campaigns or updates.

What’s Next for DOGE?

Dogecoin is entering a crucial phase. Its future price will rely on whale selling and overall market confidence. Current data shows caution, and the coin could drop to lower supports before recovering. If the market improves, DOGE could climb back quickly, particularly if it goes above $0.20.