Dogecoin is facing renewed selling pressure after flashing a death cross, a technical signal often associated with extended downside movement. The meme-based cryptocurrency has struggled to maintain momentum, dipping below key support levels as broader market conditions remain uncertain. Traders are now weighing the impact of this bearish indicator, which typically suggests a prolonged decline unless buying pressure returns.
Adding to market uncertainty, Elon Musk has intensified his criticism of the US Treasury, raising concerns about regulatory overreach and its impact on the cryptocurrency sector. Musk, a longtime supporter of Dogecoin, has repeatedly influenced its price through social media endorsements. However, his latest remarks, focused on the government’s tightening stance on digital assets, have not provided the usual bullish effect on DOGE.
Dogecoin’s price decline mirrors broader weakness in the altcoin market, with investors showing a preference for more established cryptocurrencies like Bitcoin and Ethereum amid shifting macroeconomic conditions. Analysts note that Dogecoin’s technical outlook remains fragile, especially with trading volumes declining and sentiment turning cautious. If the death cross leads to further selling, DOGE could test lower support zones.
Despite the bearish setup, Dogecoin remains a speculative favorite, with a history of sharp reversals driven by retail enthusiasm. Any renewed endorsement from Musk or a shift in regulatory sentiment could trigger a sudden rebound. However, without a clear catalyst, traders remain wary of further downside risks.
As the market reacts to regulatory developments and Musk’s continued involvement in the crypto space, Dogecoin faces a critical test. If buying interest fails to materialize, its recent death cross could signal an extended correction. Investors are now watching whether broader sentiment improves or if Dogecoin succumbs to further weakness in the coming sessions.
