Dogecoin is approaching a pivotal technical event that may greatly influence its future price movements. The cryptocurrency is nearing what could be a “death cross,” where the 200-day Exponential Moving Average (EMA) crosses below the 100-day EMA. This pattern, forming around the $0.12 mark, signals a potential shift from a bullish to a bearish trend, often leading to extended downtrends.
Should the 100-day EMA drop below the 200-day EMA and sustain this position, Dogecoin’s value could decline further, dissuading buyers and attracting sellers. Although not all death crosses lead to significant losses, they historically precede prolonged periods of price decline.
Key levels to monitor for Dogecoin include the immediate resistance at $0.12, where the potential cross may occur. Failure to surpass this resistance could hinder the cryptocurrency’s ability to regain bullish momentum. Recently, Dogecoin has found support around $0.105. A drop below this level might signal increased vulnerability and could lead to a re-test of even lower levels.
In contrast, Bitcoin is currently navigating a well-defined trading channel, with prospects of reaching $70,000 growing stronger. The cryptocurrency faces significant resistance at the 50-day and 100-day EMAs, crucial hurdles Bitcoin must clear to sustain its bullish trajectory. Successfully breaking through these EMAs could enable Bitcoin to test the upper boundary of its channel and advance toward the $70,000 target.
However, without overcoming these resistance levels, Bitcoin’s price may remain capped, limiting its upward movement. A decisive breach of the 50-day and 100-day EMAs would not only overcome the current resistance but could also pave the way for a potential rally toward $70,000.
Ethereum, on the other hand, is exhibiting signs of a bearish wedge formation on its chart. This pattern, often seen as a bearish reversal, typically develops following an uptrend and is characterized by converging support and resistance lines, contracting price ranges, and declining volume. Should this pattern unfold as anticipated, Ethereum could face a sharp decline, potentially revisiting earlier support levels around $2,600 or even $2,500.
Traders should monitor Ethereum’s volume and price movements over the coming days. A breakdown is more likely if Ethereum remains within the wedge while volume decreases. Conversely, a significant rise above the wedge’s upper resistance line could avert the bearish scenario and continue the current uptrend.
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