Market value surpasses Porsche, Dogecoin is in the spotlight
Recently, the cryptocurrency market has once again made waves. The price of Dogecoin ($DOGE) has continued to surge from $0.1 to a recent high of $0.48 this year, once again making Dogecoin the focus of the market (as of the time of writing, the price of Dogecoin was 0.4064 Dollar). Its market capitalization also reached US$59.5 billion (approximately NT$1.93 trillion), the highest level since 2021. This figure has far exceeded the market capitalization of the well-known German car manufacturer Porsche (Porsche) of US$28.6 billion (approximately NT$929.6 billion), attracting widespread attention from the market.
Source: CoinGecko Dogecoin's market value reaches 59.5 billion USD.
Technical indicators show weakening upward momentum, and the market has entered a wait-and-see mode.
However, technical analysis shows that Dogecoin's upward momentum may be weakening. According to the Ichimoku Cloud, Dogecoin's price is in a consolidation phase, with trading prices close to the baseline (Kijun-Sen) and conversion line (Tenkan-Sen). Currently, the price hovers at the edge of the cloud layer (Senkou Span A and B), indicating uncertainty in market momentum. Although the price has not clearly fallen below the cloud layer, its proximity suggests that bullish momentum is weakening, and the cloud layer may become a critical support area.
Additionally, the green cloud layer structure shows that mid-term support still exists temporarily, but the price has failed to strongly break through the conversion line and baseline, reflecting market hesitation. If the Dogecoin price cannot regain higher levels and falls below the cloud layer, it may signal the beginning of a bearish trend. Conversely, if the price can clearly break through the baseline with increased trading volume, bullish momentum may reignite, and the price could rise further.
Trend indicators are weakening, and the risk of short-term pullbacks is increasing.
Further technical indicators also support the view that the market has entered a wait-and-see phase. According to the Directional Movement Index (DMI), Dogecoin's Average Directional Index (ADX) has dropped from 25 to 18.7 in one day, indicating a weakening trend strength. Generally, an ADX value above 25 indicates a clear trend, while below 20 suggests a weak or non-existent trend. This downward trend suggests that Dogecoin's recent momentum is waning, and the market may enter a consolidation phase.
Additionally, the positive directional indicator (D+) is 19.3, and the negative directional indicator (D-) is 17.7, with a minimal gap between the two, indicating a lack of clear directional movement in the market. Neither buyers nor sellers have control, and the price may fluctuate within a range. To establish a clear trend, D+ needs to rise significantly to confirm the recovery of bullish momentum, or D- needs to increase to indicate enhanced bearish pressure.
Investors need to be alert, as a pullback may become a certainty.
Although Dogecoin has performed strongly recently, multiple technical indicators suggest that the upward momentum may be difficult to sustain. The Exponential Moving Average (EMA) indicates a potential ‘death cross’ in the short term, suggesting that the price may shift into a downward trend. If Dogecoin's price falls below the critical support level of 0.36 USD, it may further drop to 0.14 USD, returning to early November's lows.
In this situation, investors should act cautiously and closely monitor market trends and changes in technical indicators. Although Dogecoin's market value once surpassed Porsche, market sentiment is volatile, and the risk of short-term pullbacks cannot be ignored. For investors optimistic about Dogecoin's long-term development, patiently waiting for a market adjustment may be a more prudent strategy.
[Disclaimer] The market has risks, and investments should be made cautiously. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Invest at your own risk.
‘Dogecoin's market value surpasses Porsche! But 2 indicators show weakening momentum, and a major crash may occur in the short term?’ This article was first published in ‘Crypto City’
