Dogecoin (DOGE) price surged 180% last month but has decreased by 7.03% over the past seven days. As the undisputed leader of meme coins, DOGE boasts a massive market cap of $58 billion, four times larger than its closest competitor, SHIB, at $14.5 billion.
Although recent price action has highlighted DOGE's dominance, indicators like Ichimoku Cloud and DMI suggest that its upward momentum may be losing steam. Whether DOGE can maintain its upward trend or face a deeper correction will depend on how the current trend develops in the coming days.
Doge Ichimoku Cloud shows a bullish area
DOGE is currently trading above the Ichimoku Cloud, which is considered a bullish signal. The price is also supported by Tenkan-sen (blue line) and Kijun-sen (red line), both trending upwards, indicating strong short-term and medium-term momentum.
However, the narrowing gap between these lines suggests potential bullish momentum slowing down, hinting at caution for further price increases.
Doge Ichimoku Cloud. Source: TradingView
The forward cloud (Kumo) is green, signaling that DOGE's trend remains positive in the near future. However, with price volatility consolidating near the top of the cloud, there is a potential retracement risk if DOGE does not exceed recent highs.
Dropping below Kijun-sen or into the cloud could indicate a weakening trend and a shift to bearish sentiment. Currently, DOGE holders may closely monitor sustainable upward momentum on Tenkan-sen to maintain the uptrend.
The upward trend of Dogecoin is currently not very strong
Dogecoin Directional Movement Index (DMI) chart shows its ADX at 22, significantly down from over 60 just a week ago. While DOGE remains in an uptrend, the declining ADX indicates that the strength of the trend is weakening, suggesting that the upward momentum may slow down.
This decline aligns with other signals indicating a more cautious outlook for DOGE prices in the short term.
DOGE DMI. Source: TradingView
ADX measures the strength of a trend, with values above 25 indicating a strong trend and values below 20 suggesting a weak or non-existent trend. DOGE's D+ is at 21.17, representing bullish pressure, while D- is at 13.84, reflecting bearish pressure.
However, D+ has decreased while D- is increasing, indicating that the upward momentum is fading and bearish sentiment is gradually gaining traction. With the ADX at 22, the current trend of DOGE is losing steam, signaling the need for a stronger catalyst to maintain its upward trajectory.
DOGE price prediction: The largest price since 2021?
DOGE price could continue to rise if it tests and breaks through the resistance level at $0.438. Successfully surpassing this level could pave the way for a recovery towards $0.50, marking the highest price since 2021. This would push DOGE's market cap above $60 billion, larger than companies like Porsche and Mercedes-Benz. This could spark a new surge in the meme coin narrative.
This scenario will indicate new upward momentum and strong buyer interest.
DOGE price analysis. Source: TradingView
However, as DMI indicates, DOGE's current trend may be losing strength, raising concerns about a possible reversal. If the downward momentum prevails, DOGE price may test the nearest support level at $0.34.
If this level fails, the price may significantly retrace, potentially dropping to $0.14, representing a strong 64% correction from the current level.