The price of Dogecoin (DOGE) has fallen nearly 10% in the past 48 hours, falling below the $60 billion market cap threshold. The Ichimoku Cloud chart shows DOGE entering a bearish phase, with its price falling below the cloud after a period of trading above it.
The cloud, which was previously predominantly green, is now losing momentum. The Tenkan-sen (blue line) has crossed below the Kijun-sen (red line), confirming the negative sentiment. Additionally, the ADX for DOGE has increased, indicating that the downtrend is gaining momentum, which could signal more downward pressure on the price in the short term.
DOGE’s Ichimoku Cloud Shows Sentiment Is Now Bearish
Dogecoin on the Ichimoku chart shows price action recently entering a bearish phase, with candles falling below the cloud after an extended period where the price of DOGE remained above and within it.
The cloud itself has maintained a predominantly bullish green color throughout the period shown, although it is beginning to thin out in recent periods.
DOGE Ichimoku Cloud. Fonte: TradingView
Looking at the indicator lines, we see the faster moving Tenkan-sen (blue line) crossing below the slower Kijun-sen (red line), confirming the bearish sentiment.
The cloud’s leading span lines (light green and red lines) have been relatively flat, showing a potential loss of momentum in the trend. The fact that Dogecoin’s price has fallen below both the cloud and the indicator lines suggests increased selling pressure in this period.
Dogecoin’s Current Downtrend Is Strengthening
DOGE's ADX has risen to 26.3, indicating that the downtrend is strengthening with increasing momentum.
This increase in ADX signals that the trend is becoming more defined and could continue to put downward pressure on the DOGE price in the near term.
DOGE DMI. Fonte: TradingView
ADX, or Average Directional Index, measures the strength of a trend, ranging from 0 to 100. Values above 25 indicate a strong trend, while values below 20 usually point to a weak trend or a range-bound market. DOGE's D- is at 30.5, well above its D+ of 9.8, confirming the dominance of the downtrend.
DOGE price may continue to fall unless a reversal occurs in market momentum.
DOGE Price Prediction: A Possible 64% Correction?
Dogecoin’s EMAs indicate a bearish trend, with short-term lines below the long-term ones. If this downtrend persists, DOGE price could test the nearest support at $0.34.
If this level fails to hold, it could potentially drop further to $0.219 or even $0.14, representing a substantial 64% correction.
DOGE Price Analysis. Source: TradingView
However, if DOGE price manages to reverse the current downtrend, it may first face resistance around the $0.42 mark.
If DOGE breaks this resistance, it could continue its ascent to test the $0.46 and $0.48 levels next.
The article Dogecoin (DOGE) drops 10% and loses US$60 billion in market value was first seen on BeInCrypto Brasil.
