Dogecoin (DOGE) price hit its highest level since 2021 on November 23 but has since entered a correction, falling 12% in the past 24 hours. Indicators point to growing bearish momentum, with DOGE trading below critical levels and showing signs of fading bullish pressure.
If the downtrend continues, DOGE could test support at $0.34, with a possible drop to $0.14 if pressure builds. However, a rebound could see memecoin challenge resistances between $0.43 and $0.48. Thus, potentially targeting $0.50, a milestone not reached since March 2021.
Ichimoku Cloud Shows Sentiment Is Changing
The Ichimoku Cloud chart for DOGE shows a bearish outlook. The price is trading below both the Tenkan-Sen (blue line) and the Kijun-Sen (orange line), indicating downward momentum. Furthermore, it has also fallen below the cloud (Senkou Span A and B), suggesting that a bearish trend has solidified.
The cloud itself, now becoming thinner towards the right side of the chart, signals a weakening of support. Increasing the likelihood of further downward pressure.
DOGE Ichimoku Cloud. Source: TradingView
If DOGE fails to reclaim the cloud and hold above the Kijun-Sen, the bearish momentum could accelerate, pushing the price lower. However, the flat base of the Kijun-Sen could act as a minor resistance, and a return above the cloud would indicate a possible trend reversal.
For now, the Ichimoku Cloud suggests that Dogecoin price is in a critical phase, during which bears will remain in control unless a strong recovery occurs.
Downward trend may intensify
Dogecoin’s DMI chart indicates an ADX of 22.84, with D+ at 13.5 and D- at 29.7, highlighting a potential shift in momentum. The Average Directional Index measures the strength of a trend, with values above 25 indicating a significant trend regardless of direction.
Meanwhile, D+ represents bullish force, and D- represents bearish force. In this case, the higher D- compared to D+ confirms that bearish forces are currently dominating DOGE’s price action.
DMI da DOGE. Fonte: TradingView
Although the ADX at 22.84 suggests that the downtrend is not yet strongly established, the growing gap between D- and D+ points to an increase in bearish 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 the D- remains dominant, it could confirm a stronger downtrend, leading to further price declines.
DOGE Price Prediction: Can the Token Reach $0.50 in November?
Dogecoin’s EMA lines suggest a shift in market sentiment from bullish to bearish, with the current price trading below the short-term lines.
Furthermore, these short-term lines are trending downward, indicating increasing selling pressure and a weakening bullish momentum. This bearish development suggests that DOGE price is losing its previous bullish support, potentially paving the way for further price declines.
DOGE Price Analysis. Source: TradingView
If the downtrend strengthens, Dogecoin price could test the key support at $0.34. If this level fails to hold, the price could drop to $0.14, marking a significant 61% correction.
However, if DOGE price manages to reverse the trend and regain bullish momentum, it could challenge resistances at $0.43 and $0.48. Breaking these levels would likely push the memecoin towards $0.50, a price not seen since March 2021, signaling a strong recovery.
The article Dogecoin (DOGE) price at risk of strong correction, according to analysis was first seen on BeInCrypto Brasil.
