Dogecoin (DOGE) remains under intense selling pressure after dropping more than 36% from its year-to-date peak. Technical indicators now suggest that the meme-inspired cryptocurrency could be on the verge of a deeper correction as bearish chart patterns align.
Dogecoin nears death cross and bearish pennant breakdown
The daily chart shows that Dogecoin has been trending lower throughout October, with momentum weakening as the token approaches a potential death cross formation—a technical signal that occurs when the 50-day weighted moving average (WMA) crosses below the 200-day WMA.
Historically, this pattern has preceded sharp selloffs. The last time DOGE formed a death cross, in February, the token plunged by more than 50% in the weeks that followed. A similar setup now appears to be developing as the moving averages converge.
At the same time, Dogecoin has formed a bearish pennant pattern, typically marked by a steep decline followed by a short consolidation phase within a symmetrical triangle. The narrowing of this formation suggests a potential continuation of the prevailing downtrend once the price breaks below support.
DOGE is also trading below the Supertrend indicator, reinforcing the bearish bias. If downward momentum persists, analysts warn that the token could retest its monthly low of $0.1493—about 25% below current levels.
Weakening demand compounds downside pressure
Beyond technical signals, market data points to waning investor interest in Dogecoin. According to CoinGlass, futures open interest has fallen below $2 billion for the first time since early October, down from over $4 billion earlier this month—reflecting a sharp drop in speculative positioning.
Spot market activity has also cooled, with daily trading volume slipping to $2.7 billion on October 26 from a monthly peak of $20.45 billion, signaling a substantial decline in liquidity and retail participation.
Meanwhile, the REX-Osprey DOGE ETF, launched earlier this month, has failed to attract fresh inflows, with assets under management stagnating around $32 million. In contrast, the REX-Osprey XRP ETF, launched on the same day, has already surpassed $100 million in assets—highlighting a stark difference in investor sentiment between the two tokens.
Without a clear catalyst beyond potential future ETF approvals by the U.S. SEC, Dogecoin may continue to struggle for sustained upside momentum, leaving the token vulnerable to further declines in the near term.
