Dogecoin price continues to display bearish technicals. Traders may want to zoom out to larger timeframes and consider DOGE’s bearish macro potential.

Dogecoin price is wreaking havoc on the risk-taking bulls who entered the market this year. As of December 21, the notorious meme coin is down 32%, bringing the lost market value to a 90% decline since all-time highs. Still, despite the whopping price decline, DOGE bears may just be getting started.

Dogecoin price points south

Dogecoin price currently auctions at $0.073. Congestion forms on smaller time frames above the 50-month moving average (MMA). A close below the indicator would be a tremendous display of strength from bears in the market. Auction Market Theory, which uses Pareto’s 80-20 rule, would suggest DOGE to have an 80% chance of tagging the 100-month moving average if the 50-MMA fails to provide support.

The 100-month moving average is currently positioned at $0.037 and has yet to be retraced following Dogecoin’s infamous 10x bullrun in 2021. DOGE would decline by 48% if the bears were successful.

Still, there are ten days left in December, and Crypto investors know that a lot can change heading into the end of the month. Invalidation of the bearish thesis will require the monthly closing candle stick to settle above the 50-MMA, ideally with a bullish hammer or DOJI candlestick. 

DOGE will likely need to recoup between 50%-80% of lost market value on the month to establish the bullish requirements. In doing so, Dogecoin could remain range bound and potentially tag the midpoint of the current trading range at $0.09, resulting in a 35% increase from the current market value.

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