U.Today – has entered a downtrend as it has recently fallen below the 50-day exponential moving average (EMA). This barrier is important for DOGE because it typically denotes bullish momentum when it holds above it. However, a drop below it signals a shift into bearish territory and raises questions about the asset’s short-term prospects. The price action of late has brought DOGE’s vulnerability to light.
The fact that Dogecoin has failed to stay above the 50 EMA is worrying despite the overall weakness in altcoins. This implies that selling pressure is outstripping buying interest, which could result in an even lower drop if the current trend holds.
In technical terms, a death cross occurs when a long-term moving average crosses below a short-term moving average. DOGE's drop below the 50 EMA is a precursor that often signals more negative developments, even though it has not yet formed a full-fledged death cross.
The weakness of
Bitcoin’s market dominance is progressively decreasing as it shows signs of decline. As an indicator of a marked decline in market strength, Bitcoin’s price has recently dropped to the 100-day EMA. This action raises the possibility that Bitcoin’s bullish momentum is waning. The high level of liquidity around $63,000 is highlighted in the latest market data, which is crucial.
The EMAs are also converging at $63,000, reinforcing this price as a potential support zone, making this area increasingly significant. Bitcoin may test this level soon if it continues to decline. Decreasing volume is another alarming indicator. A drop in trading volume is often a sign that the trend is losing popularity. Decreasing volume, in the case of Bitcoin, raises the possibility that the recent uptrend may not last.
This could lead to further declines if selling pressure increases, so traders and investors should proceed with caution. The current state of Bitcoin is clearly depicted by technical indicators. An indication that support for the Bitcoin price is waning is the alignment of the 50-day, 100-day, and 200-day EMAs.
If Bitcoin breaks below the 100-day EMA, a recent support level, it could become a crucial resistance level. The $63,000 mark has historically been important for Bitcoin, acting as both resistance and support at different times.
The unexpected decline of Tron
Recently, Tron suffered a significant drop of 6.4%. TRX has fallen to the 50 EMA, a critical support level, as a result of this abrupt drop. Investors can have some hope that TRX will recover from its abrupt drop because this support level is often considered as a potential price reversal point.
However, there are other variables to consider. The fact that the RSI has fallen below 50 is a bearish indication that there is significant selling pressure. This phenomenon implies that unless there is a substantial change in market sentiment, the current downtrend may continue.
TRX could fall further, although it has found support at the 50 EMA. In case the price breaks this support level, $0.1200 would be the next significant support. A drop below this level could indicate long-term bearish activity. Historically, this level has offered a strong base.
These support levels are something that investors should keep a close eye on. The important levels to watch are the 50 EMA, which TRX is currently holding, and the $0.1200 level that lies below it. A bounce off the 50 EMA could suggest a reversal and a possible recovery. The $0.1200 support level could be tested if the market fails to hold above this level.
This article was originally published on U.Today
