Dogecoin is showing a rare weekly “bearish cross” as traders question whether last week’s drop to $0.08 marked a reset for the cycle or just the beginning of a deeper decline. This pattern is significant beyond DOGE itself, as memecoin activity is increasingly seen as a gauge of overall risk appetite in crypto.
Is Dogecoin at a Bottom?
A chart shared by Charting Guy highlights the 20-week EMA crossing below the 200-week EMA—a technical signal he suggests has historically coincided with DOGE hitting bottom. “DOGE typically bottoms around when the 20 weekly EMA crosses below the 200 weekly EMA. That happened last week,” he noted, adding that he increased his position by 50% at the lows and alerted his community to buy.
This view contrasts with more cautious, range-based analyses from other traders who are focusing on spot market structure rather than moving averages alone. Daan Crypto Trades described the recent bounce as constructive but framed it as a range-bound trade rather than a confirmed trend reversal. “DOGE: Decent price action here over the past few days after the big $0.08 test last week. Currently seeing this $0.08–$0.13 area as a large range,” he posted. “Anything above that point would make me confident in a further move toward the Daily 200MA/EMA. Currently near the middle, so it’s hard to assume a direction the way it’s trading.”
On his chart, DOGE was hovering around the middle of that range near $0.10–$0.11, with the upper boundary around $0.132 and the lower support near $0.088. In short, the market is neither trending clearly nor reverting to the mean—it’s simply waiting for a catalyst.
This indecision can be costly in a highly leveraged asset like Dogecoin. João Wedson, CEO of Aphractal, struck a cautious tone, warning, “If you are long on Doge, you will likely be liquidated soon!” An aggregated liquidation heatmap shared by Alphractal underscores this risk, showing dense clusters of potential liquidation levels below the current price over the past three days. This suggests that if DOGE begins to trend rather than chop, stop-losses could trigger a cascading sell-off.
Wedson also suggested that DOGE rallies can serve as a volatility signal for Bitcoin, often occurring when Bitcoin is moving sideways. Alphractal echoed this rotation narrative, noting, “Over the past few days, memecoins have significantly outperformed BTC and other altcoins. What stood out the most was Dogecoin, where the number of trades surpassed all others in its category. However, in the last few hours, memecoins have started to correct while BTC remains relatively stable.”
The near-term outlook is straightforward, even if conviction is lacking. Bulls need a clear break above the $0.13 range high to reopen a path toward the daily 200 MA/EMA. Bears, on the other hand, are watching to see if the market retests the $0.08 level and whether it holds amid potential liquidation pressures.
At the time of writing, Dogecoin is trading at $0.10.
Frequently Asked Questions
Dogecoins Bearish Cross FAQs
Beginner Questions
What is a bearish cross on a chart
A bearish cross is a technical analysis pattern where a shorterterm moving average line crosses below a longerterm moving average line Its often seen as a signal that the trend may be shifting from bullish to bearish
Im new to crypto What does this mean for Dogecoin
It suggests that based on historical price patterns selling pressure may be increasing and the price could potentially continue to decline in the medium term Its a warning sign not a guarantee
Is a bearish cross a sure sign the price will drop
No it is not a sure sign It is one indicator among many While it suggests a higher probability of a downtrend markets can be unpredictable and other factors like news or overall market sentiment can override it
Whats the difference between a market bottom and a further breakdown
Market Bottom The lowest point the price reaches before it starts a sustained upward trend again
Further Breakdown The price continues to fall to new lower levels
Intermediate Advanced Questions
Why is a weekly chart bearish cross significant
Patterns on weekly charts are considered more significant than those on daily or hourly charts because they filter out shortterm noise and represent longerterm sentiment shifts A weekly bearish cross suggests a more serious and sustained change in trend
Can a bearish cross actually signal a bottom is near
Yes sometimes This is known as a bear trap or a false signal If the price stops falling soon after the cross and reverses strongly upward it can trap sellers who bet on a continued drop This reversal can sometimes mark a bottom but its a highrisk scenario
What other indicators should I look at to confirm this signal
To get a clearer picture look at
Trading Volume Is the decline happening on high volume or low volume
Support Levels Is the price approaching a known historical price floor where it has bounced before