The price of Dogecoin (DOGE) has shown both promising gains and potential warning signs. While it has enjoyed some impressive upward moves, there is still uncertainty over whether it can sustain this momentum. Traders are paying close attention as the coin approaches important resistance levels that could shape its next moves.
At the same time, there are indications that DOGE may face challenges in maintaining its recent strength. The next few days will likely be crucial in determining its near-term trajectory.
DOGE BBTrend Reaches Highest Level Since May
DOGE’s BBTrend recently surged to its highest level since May 2024, surpassing 15, a clear sign of significant bullish momentum. This spike marked a strong upward push in the market, where DOGE benefited from heightened buying interest and volatility.
However, after this impressive climb, BBTrend has started to decline slightly, although it is still close to 15, indicating that the trend has not yet reversed but may be at a critical juncture.
Read more: How to buy Dogecoin (DOGE) with PIX
BBTrend, or Bollinger Bands Trend, is a key technical indicator that measures the strength and sustainability of price movements by analyzing how much the price deviates from the Bollinger Bands. Historically, DOGE’s BBTrend has crossed above 12 during its last major rallies, signaling continued upward momentum.
If BBTrend remains above this critical level, it suggests that DOGE could extend its uptrend and maintain its current strength. However, the recent pullback from the 15-mark also raises concerns about a possible exhaustion.
DOGE BBTrend. Fonte: TradingView
While a BBTrend above 12 is often a bullish sign, this slight decline could indicate that DOGE’s momentum is starting to weaken. It’s possible that the coin is entering a consolidation phase or even losing momentum after a prolonged rally.
Therefore, while DOGE has demonstrated strong price action, it is essential to closely watch whether it can sustain its BBTrend above 12 or whether further declines in the indicator will confirm a shift in market sentiment, potentially signaling the end of its upward run.
DOGE ADX shows that the trend is losing strength
DOGE’s ADX is currently at 33.68, down from a recent peak of 45.69 in the past few days. This decline suggests that while the trend still has some strength, DOGE’s price may be starting to lose momentum. ADX, or Average Directional Index, is a key indicator used to measure the strength of a trend, regardless of its direction.
Typically, an ADX above 25 indicates a strong trend, while a value below 20 suggests a weak or trendless market. Higher values, such as those closer to 45, indicate a very strong trend, which DOGE has recently exhibited.
DOGE Average Directional Index. Source: TradingView
With the ADX now falling to 33.68, this is still a healthy level, showing that the uptrend remains in play.
However, the drop from its all-time high sends a cautionary signal. While 33.68 is still considered strong and indicates that DOGE’s price action has not lost all of its momentum, the decline from 45 could mean that the bullish energy is starting to fade.
This decrease in trend strength could imply that the hype driving DOGE’s recent price rally is waning. If the ADX continues to fall, it could suggest that the uptrend is at risk of reversing or entering a consolidation phase.
Price forecast
DOGE’s EMA lines are currently in a bullish formation, having recently experienced a golden crossover a few days ago, which triggered a sharp 30% price increase. A golden crossover occurs when the short-term Exponential Moving Average (EMA) crosses above the long-term EMA, signaling a potential uptrend.
While these EMAs still show bullish signs, the short-term EMA has started to drop significantly in the past few days. This decline in the short-term EMA could be an early warning that DOGE’s momentum is starting to slow down.
DOGE EMA lines. Source: TradingView
EMA lines smooth out price data, giving more weight to recent prices, and help traders identify trends more accurately. In the case of DOGE, these EMAs initially pointed to a strong uptrend, but with the short-term line weakening, there may be a shift in market sentiment.
DOGE is struggling to break above key resistance levels at $0.135 and $0.128. These levels have held firm despite the recent rally, and if DOGE manages to break above them, there is a strong possibility that it could quickly reach $0.14. However, the weakening ADX, which measures the strength of a trend, suggests that the bullish momentum is waning as other memecoins start to attract more attention.
With the ADX losing momentum, the trend may not be strong enough to push DOGE past these resistances, and instead, a reversal could be on the horizon. If that happens, the price of DOGE could drop to $0.098 or even $0.089 in the coming days.
The article Indicators suggest Dogecoin (DOGE) slowdown appeared first on BeInCrypto Brasil.
