The price of Dogecoin (DOGE) has recently seen a massive surge, up 128% in the last 30 days, marking a major milestone as it celebrates 11 years since its launch in 2013 by Billy Markus and Jackson Palmer. As the largest meme coin on the market, with a market cap approaching $65 billion, DOGE continues to attract strong interest.
However, DOGE’s Ichimoku Cloud chart is showing mixed signals. While the price remains above the cloud, indicating a positive market sentiment, the convergence of the distance between the price and the cloud indicates potential volatility, which could either lead to continued gains or a reversal depending on future price action.
DOGE's Ichimoku Cloud Shows Mixed Signals
DOGE's Ichimoku Cloud chart is showing an overall bullish trend with the price positioned above the cloud, indicating that the market sentiment remains positive for Dogecoin.
The green line (Tenkan-sen) and the blue line (Kijun-sen) are above the red (Senkou Span A) and orange (Senkou Span B) lines, indicating additional bullish momentum.
The price remains above the cloud, which is a key signal of potential additional gains. However, this distance is shrinking.
The recent consolidation near the top could indicate either a continuation or a reversal, depending on how the price interacts with the cloud and the lines. If DOGE price breaks below the cloud, it would indicate a bearish outlook.
Dogecoin trend may turn negative
The recent decline in DOGE’s ADX from above 30 to 15.2 indicates weakening trend strength. An ADX below 20 typically indicates a lack of trend momentum, suggesting that the recent bullish momentum behind DOGE is fading.
This decline in ADX indicates that the market may be entering a consolidation phase, without a clear direction, after a period of strong upward movement.
The Average Directional Index (ADX) measures the strength of a trend, regardless of whether it is bullish or bearish. It ranges from 0 to 100, with values above 25 typically indicating a strong trend, and values below 20 indicating a weak or no trend. With D+ at 18.7 and D- at 20.4, D- exceeding D+ indicates that selling pressure is gaining strength.
With a low ADX, this indicates that the Doji may be losing momentum, with the price potentially pulling back or further consolidation as selling pressure begins to outweigh buying activity.
DOGE Price Prediction: Will Dogecoin Drop Below $0.30?
Dogecoin price may face a potential correction as the short-term EMA lines are about to cross below one of the long-term EMA lines, which will form a death cross. A death cross usually signals a reversal from an uptrend to a downtrend, and if this happens, Dogecoin price may see a decline.
The intersection of these lines indicates a weakening of the upward momentum and suggests that the price may face downward pressure in the near future.
If a death cross occurs, the Doji price may first test the support at $0.36 and $0.34. If these levels fail to hold, the price may drop further, reaching $0.219.
However, if the uptrend continues and D+ (positive directional movement) strengthens over D- (negative directional movement), Doji may regain bullish momentum and test the $0.48 level again, possibly rising to $0.50 for the first time since 2021.