The Dogecoin price has increased by 180% over the last month, and its market capitalization has reached $58 billion, which is four times that of its closest competitor SHIB at $14.5 billion.
The price dynamics highlight DOGE's dominant position, however, technical indicators such as the Ichimoku cloud and DMI hint at a slowdown in bullish momentum. Let's find out whether DOGE can continue its rally or face a deeper correction.
The Ichimoku cloud creates a bullish aura for DOGE.
DOGE is above the Ichimoku cloud, which is considered a bullish signal. The price is also supported by the Tenkan-sen (blue line) and Kijun-sen (red line), both pointing upwards, indicating strong short-term and medium-term momentum. However, the narrowing gap between these lines hints at a potential slowdown.
The cloud (Kumo) ahead is green. This indicates that the DOGE trend will remain bullish in the near term. However, with the consolidation of price movements at the top of the cloud, there is a risk of a possible correction if DOGE cannot overcome recent highs.
A drop below the Kijun-sen or a price drop into the cloud will indicate a weakening trend and a transition to a slow rise.
Technical indicators promise a reversal.
The Dogecoin Directional Movement Index (DMI) — specifically, the ADX (Average Directional Index) — has decreased from 60 to 22 over the week, signaling a slowdown in upward momentum and potentially foreshadowing a trend reversal.
This decline aligns with other signals indicating a more cautious price forecast for DOGE in the short term.
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DOGE Forecast: Will it reach the 2021 peak?
Dogecoin will continue to rise if it breaks through resistance at $0.438. In this case, it will open the way to the 2021 peak at $0.50, and DOGE's market capitalization will exceed $60 billion. Thus, by market value, the meme cryptocurrency will surpass companies like Porsche and Mercedes-Benz.
If the DMI signals trigger and the bearish momentum strengthens, the price of DOGE could test the nearest support at $0.34. A breakthrough would worsen the technical picture and potentially trigger a decline of 64% from current levels to $0.14.
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