Dogecoin (DOGE) price is at a critical juncture as technical indicators point to potential downside risks. The Ichimoku Cloud and DMI both signal bearish sentiment as sellers maintain control over the trend.
The converging EMA lines suggest weakening bullish momentum, raising the possibility of a stronger downtrend if a crossover occurs. DOGE’s price trajectory now depends on whether it holds support or breaks resistance.
Ichimoku Cloud Indicates a Bearish Scenario
The Ichimoku Cloud chart indicates a current bearish sentiment in the market. The price recently moved below the cloud, which is generally seen as a negative sign, suggesting downward pressure.
This setup implies that sellers are in control, and there may be limited buying interest at these levels. However, the fact that the cloud is green indicates that buyers are trying to regain control.
Read more: How to buy Dogecoin (DOGE) with PIX
DOGE Ichimoku Cloud. Source: TradingView
If DOGE manages to get back above the cloud, it could indicate a possible reversal, but with the current indicators, the likelihood is slim.
Overall, the bearish Ichimoku Cloud setup shows that DOGE may continue to face downward pressure unless a strong reversal signal occurs in the coming days.
Dogecoin’s downtrend is strong
The DMI (Directional Movement Index) chart shows the ADX at 24.2, indicating a moderately strong, though not firmly directional, trend. An ADX reading close to 25 usually suggests that a trend is present but weak, implying that while there is momentum, it lacks substantial strength.
In this case, ADX above 20 signals that the current trend in DOGE's price movement may persist, but without enough momentum to break new levels.
DOGE DMI. Fonte: TradingView
Currently, DOGE’s +DI is at 14.9 and -DI at 23.3, showing that downward pressure is stronger than upward momentum. With -DI above +DI, sellers have the upper hand, suggesting that the market’s largest memecoin could face continued downward pressure in the near term unless there is a shift in buying interest.
DOGE Price Prediction
The DOGE price chart currently shows its EMA lines in a potentially precarious position, with indications that a bearish setup may be forming. While the EMAs still maintain a bullish structure — short-term lines positioned above the long-term ones — the distance between them is decreasing.
This convergence signals a possible loss of bullish momentum as the most recent short-term EMA has started to decline significantly. If this short-term line crosses below the long-term EMAs, it would establish a strong bearish setup, suggesting further downward pressure on DOGE’s price.
Read more: Dogecoin vs Bitcoin – A Comparison
DOGE EMA and Support and Resistance lines. Source: TradingView
Should this bearish setup materialize, DOGE price could test the next support level at $0.127, indicating a possible pullback from the current price.
However, if the trend reverses and DOGE enters an uptrend, it could attempt to retest its previous resistance at $0.179, representing a potential 18.5% price increase.
The article Under Pressure, Dogecoin (DOGE) Price May Plummet appeared first on BeInCrypto Brasil.
