Dogecoin’s once-invincible rally has hit a roadblock, plummeting 20% in 24 hours and a staggering 30% in the past week. After its recent feat of surpassing Porsche’s market cap, the meme coin is facing intense bearish pressure, with traders eyeing critical support levels for signs of stability or further collapse.
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Ichimoku Cloud Hints at Bearish Skies Ahead
DOGE’s Ichimoku Cloud paints a bleak picture:
Price Below the Cloud: Indicates strong bearish momentum.
Bearish Crossovers: The blue Tenkan-sen line remains below the red Kijun-sen line, signaling short-term weakness.
Descending Cloud Lines: Senkou Span A and B are sharply sloping downward, creating a thick resistance barrier.
For DOGE to escape this downward spiral, it needs a reversal above the cloud, paired with a bullish crossover of the Tenkan-sen and Kijun-sen lines. Until then, bearish dominance is likely to persist.
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DMI Confirms Sellers Are in Control
DOGE’s Directional Movement Index (DMI) signals an intensifying downtrend:
ADX at 46.7: Highlights a strong bearish trend gaining momentum.
D- Line (45.7): Outpaces the D+ line (5), reflecting overwhelming selling pressure.
With the ADX above 40, this isn’t just a minor pullback—it’s a firmly entrenched bearish trend.
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Key Levels to Watch for DOGE
Bearish Scenario
Support 1: $0.219
Support 2: $0.14
If the selling pressure persists, DOGE could slide to $0.219. A breakdown below this level might trigger a deeper correction to $0.14, marking a potential 48% drop from current levels.
Bullish Recovery
Resistance 1: $0.34
Resistance 2: $0.43
On the flip side, a recovery above $0.34 could spark a rally to $0.43, representing a 59% upside. Achieving this requires a significant shift in sentiment and robust buying momentum to counteract the selling dominance.
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Will DOGE Bark Again?
Dogecoin's fate hinges on whether bulls can stage a comeback or if bears continue to dominate. With Elon Musk's influence and a community rallying behind DOGE, it’s possible we’ll see a resurgence—especially with key catalysts like regulatory shifts or broader market recovery.
For now, patience is key. As always, don’t let the volatility bite—approach with a solid strategy.
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