Dogecoin's wild fluctuations! After breaking through the 2021 high, it sharply fell again, is the dream of $0.5 shattered? Can DOGE make a comeback in the future?
On November 23, Dogecoin (DOGE) surged to its highest peak since 2021, but the excitement didn't last long before it started to pull back, dropping 12% in 24 hours. From several technical indicators, the downward momentum of DOGE is quite strong, having already broken through several important support levels, and the upward momentum is clearly insufficient.
If this momentum continues, DOGE may try the support at $0.34 again, and if selling pressure increases a bit more, it might even drop to $0.14. However, if it rebounds, DOGE has a chance to challenge the supports at $0.43 and $0.48, and it could even push towards $0.5, which would be the highest price since March 2021.
From the Ichimoku cloud chart of Dogecoin, market sentiment has drastically changed. The price has fallen below the blue and orange lines and has crossed through the cloud, indicating an increasingly bearish trend. The cloud has also started to thin out, weakening the strength of the support levels, which increases the risk of further declines.
If Dogecoin cannot break through the cloud and return above the orange line, this downward momentum may accelerate. Of course, the bottom of the orange line might provide some support for the price, but if there is a real rebound and it breaks through the cloud, then the trend might change.
Currently, Dogecoin's price is at a critical moment; unless there is a strong rebound, the bears will dominate. If this downward trend continues, Dogecoin could weaken further.
According to the DMI indicator, Dogecoin's ADX value is 22.84, the bullish strength D+ is 13.5, and the bearish strength D- is 29.7, indicating that market momentum may change. When the ADX value is greater than 25, the trend significantly weakens, whether it is rising or falling. Currently, D- is greater than D+, indicating that selling pressure is dominating the market, and the price will continue to fall.
Although the ADX value has not yet exceeded 25, the gap between D- and D+ is widening, and the bearish momentum is becoming stronger. This suggests that Dogecoin may enter a downward phase, with selling pressure exceeding buying interest. If the ADX continues to rise and D- remains dominant, the downward trend will strengthen, and the price will continue to fall.
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