The price of Dogecoin (DOGE) reached its highest level since 2021 on November 23 but has since entered a correction, dropping 12% in the last 24 hours. Ichimoku Cloud, DMI, and EMA indicators all point to increasing downward momentum, with DOGE trading below key levels and showing signs of weakening upward pressure.
If the downtrend continues, DOGE could test the support level at $0.34, with the potential to drop to $0.14 if selling pressure increases. However, a recovery could cause DOGE to challenge resistance levels at $0.43 and $0.48, potentially aiming for $0.50, a significant milestone not reached since March 2021.
DOGE Ichimoku Cloud shows changing sentiment
The Ichimoku Cloud chart for DOGE shows a bearish outlook. The price is trading below both Tenkan-Sen (blue line) and Kijun-Sen (orange line), indicating downward momentum. The price has also dropped below the cloud (Senkou Span A and B), suggesting that the bearish trend has been reinforced.
The cloud itself, which is currently thinner on the right side of the chart, signals weakening support, increasing the likelihood of further downward pressure.
DOGE Ichimoku Cloud. Source: TradingView
If DOGE fails to reclaim the cloud and hold above Kijun-Sen, the downward momentum could accelerate, pushing the price lower. However, the flat bottom of Kijun-Sen could act as a minor resistance level, and a recovery back above the cloud would indicate a potential trend reversal.
Currently, the Ichimoku Cloud shows that the price of Dogecoin is in a crucial phase, where bears will remain in control unless a strong recovery occurs.
The downtrend of Dogecoin could become stronger
Dogecoin DMI chart shows an ADX of 22.84, with D+ at 13.5 and D- at 29.7, highlighting a potential momentum shift. ADX, or Average Directional Index, measures the strength of a trend, with values above 25 indicating a significant trend, regardless of direction.
Meanwhile, D+ represents bullish strength and D- represents bearish strength. In this case, D- being higher than D+ confirms that bearish forces are currently dominating DOGE's price action.
DOGE DMI. Source: TradingView
Although the ADX at 22.84 indicates that the downtrend has not yet been firmly established, the widening gap between D- and D+ suggests increasing downward momentum.
This setup indicates that DOGE is likely entering a downtrend, with selling pressure outweighing buying interest. If the ADX continues to rise above 25 while D- remains dominant, it could confirm a stronger downtrend, leading to further price declines.
DOGE price prediction: Can DOGE reach $0.50 in November?
The Dogecoin EMA lines show a shift in market sentiment from bullish to bearish, with the current price trading below the short-term EMA lines.
Moreover, these short-term lines are trending downwards, indicating increasing selling pressure and weakening upward momentum. This downward price movement suggests that the price of DOGE is losing previously established upward support, potentially paving the way for further price declines.
DOGE price analysis. Source: TradingView
If the downtrend strengthens, the price of Dogecoin could test the critical support level at $0.34. If this level fails to hold, the price could drop to a low of $0.14, marking a significant 61% correction.
However, if the price of DOGE manages to reverse the trend and regain upward momentum, it could challenge the resistance levels at $0.43 and $0.48. Surpassing these levels could likely drive DOGE to $0.50, a price level not seen since March 2021, signaling a strong recovery.