After Dogecoin (DOGE) surpassed Porsche in market value in early December, its price quickly reversed. Currently, DOGE is retreating after a strong rally: it has fallen 20% in the past 24 hours and nearly 30% in 7 days.
The rapid decline reflects the intensification of bearish pressure in the market, while technical indicators show the potential risk of further downside. As prices hover around key support levels, traders are closely watching whether they can find stability or potential recovery opportunities amid the violent volatility.
Ichimoku Cloud Chart Reveals Dogecoin’s Continued Bearish Trend
Dogecoin's Ichimoku cloud chart clearly shows its current bearish pattern. The price is clearly below the Ichimoku cloud, and the red line (Senkou Span A) and green line (Senkou Span B) of the cloud form a thick descending structure. This shows that strong overhead resistance still exists and strengthens the current bearish trend.
Furthermore, the blue Tenkan-sen line remains below the red Kijun-sen line, forming a bearish crossover, reflecting weakness in the short to medium term. The green Chikou Span is below the price action and clouds, further confirming the negative sentiment in the market. The continued decline of the red and green lines suggests that the bearish trend is likely to continue unless a significant trend reversal signal emerges.
If the current downward momentum holds, DOGE prices could drop further to support areas close to recent lows. To reverse this trend, the price needs to break above the cloud and the blue Tenkan-sen line needs to cross the red Kijun-sen line upwards. However, given the current market conditions, the probability of these signals occurring in the short term is low.
DOGE’s decline intensifies: the trend is strong and a correction is inevitable
Dogecoin’s DMI (Directional Movement Index) chart shows that the current downtrend is strong. The ADX (Average Directional Index) has risen rapidly from 14.7 to 46.7 over the past three days, indicating a significant increase in trend strength regardless of direction.
Among specific indicators, the orange D- line representing negative momentum currently reaches 45.7, which is much higher than the blue D+ line representing positive momentum, which is only 5.0. This significant imbalance indicates that the market's downward trend is dominant and sellers are overwhelming buyers. The key ranges for ADX values are: below 20 indicates a weak or directionless trend, 20-40 indicates a moderate trend, and above 40 indicates a very strong trend. The current ADX value of 46.7 clearly reveals an accelerating downward trend for DOGE.
Short-term outlook: Risk of further decline is high
This combination of a high ADX value, a dominant D- line, and a weak D+ line indicates the risk of further bearish price action in the future. Currently, the market lacks sufficient buying support to offset the strong selling pressure.
Price Prediction: Key Support and Potential Correction
If the downtrend continues, DOGE could fall further to the critical support level of $0.219, an important area where buyers may try to stabilize the price. However, if the selling pressure persists and breaks this support, the price may fall further to $0.14. Such a move would represent an additional 48% correction from the current levels, highlighting the severity of the current bearish momentum.
On the other hand, if DOGE manages to regain upward momentum, the price may challenge the $0.34 resistance, with a further breakout paving the way for a rise towards $0.43. This increase would be approximately 59% from current prices, but achieving this scenario would require a significant shift in market sentiment, with increased buyer pressure and reduced seller dominance.
in conclusion
Current technical indicators clearly show that DOGE is in a downtrend with sellers dominating. The market needs to pay close attention to the performance of key support levels and whether a potential shift in sentiment can trigger a rebound.
That’s all for today’s article. We are currently in a bull market, and things are turbulent. We share passwords every day.