DOGE Posts Rare Bearish Cross, Analysts Divided on Next Move

Dogecoin (DOGE) has posted a rare weekly bearish cross, as its 20-week exponential moving average fell below the 200-week EMA. This technical signal has left analysts divided on whether last week's selloff marked a bottom or the start of a deeper decline.

According to Charting Guy, a historical analysis suggests that DOGE has historically bottomed around the point when the 20-week EMA crosses below the 200-week EMA. He notes that this happened last week and has increased his position by 50% at the lows.

However, not all traders share this conviction. Daan Crypto Trades views the bounce off $0.08 as constructive but frames it as a range trade, rather than a trend reversal. He believes that the token is currently trading within a large range of $0.08 to $0.13 and requires further movement above this range to confirm a trend reversal.

João Wedson, CEO of Alphractal, takes a more cautionary tone, warning that long positions in DOGE are likely to be liquidated soon. He points out that aggregated liquidation heatmaps show thick bands of potential liquidation levels sitting below DOGE's current price, suggesting stop-driven cascades if the token breaks lower.