In summary
With the bearish momentum strengthening, the price of Dogecoin has dropped nearly 10% in 24 hours, falling below the $60 billion market cap threshold.
The Ichimoku chart shows bearish sentiment, with DOGE falling below the cloud and Tenkan-sen crossing below Kijun-sen.
The rise of ADX to 26.3 confirms a stronger downward trend, and DOGE may test support levels of $0.34 and $0.219.
The price of Dogecoin (DOGE) has dropped nearly 10% in the past 24 hours, falling below the $60 billion market cap threshold. The Ichimoku chart shows that Dogecoin has entered a bearish phase, with its price falling below the cloud after being above it for some time.
The previously green-dominated cloud is now losing momentum. Tenkan-sen (blue line) has fallen below Kijun-sen (red line), confirming negative sentiment. Additionally, DOGE's ADX has risen, indicating that the downward trend is strengthening, which may suggest further downward pressure on the price in the short term.
DOGE Ichimoku Cloud shows that market sentiment is currently bearish.
The Dogecoin Ichimoku chart shows that the price trend has recently entered a bearish phase, with the candlestick chart falling below the cloud after Dogecoin price lingered above and inside the cloud for a long time.
The cloud itself has remained predominantly bullish green within the displayed time range, although it has started to thin out recently.
DOGE Ichimoku Cloud. Source: TradingView
From the indicator lines, we see the faster-moving Tenkan-sen (blue line) crossing below the slower-moving Kijun-sen (red line), confirming bearish sentiment.
The current downward trend of Dogecoin is strengthening.
DOGE's ADX is currently at 26.3, up from around 17 two days ago, indicating that the downward trend is strengthening. An ADX value above 25 typically indicates a strong trend, and in this case, the rising ADX suggests that DOGE's bearish momentum is increasing.
The increase in ADX indicates that the trend is becoming clearer and may continue to exert downward pressure on DOGE's price in the short term.
DOGE DMI. Source: TradingView
ADX, or Average Directional Index, is used to measure the strength of a trend, ranging from 0 to 100. Values above 25 indicate a strong trend, while values below 20 typically indicate a weak trend or the market is in a range. DOGE's D- is 30.5 and D+ is 9.8, with D- much higher than D+, indicating that the dominant force in the market is a downward trend.
This indicates that unless there is a change in momentum, DOGE's price may continue to decline, and it could further drop unless there is a market reversal.
DOGE Price Prediction: Potential 64% Correction?
The EMA line of Dogecoin's price clearly indicates that the cryptocurrency is in a downward trend, with the short-term line below the long-term line. If this bearish trend persists, DOGE's price may test the recent support level of $0.34.
If this level cannot be maintained, it may further drop to $0.219 or even as low as $0.14, which indicates a significant retracement of 64%.
DOGE Price Analysis. Source: TradingView
However, if DOGE's price successfully reverses the current downward trend, it may first face resistance around $0.42.
If DOGE breaks through this resistance level, it may continue to rise, next testing levels of $0.46 and $0.48.
