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Dogecoin (DOGE) price has dropped nearly 10% in the past 24 hours, falling below the $60 billion market capitalization threshold. The Ichimoku Cloud chart shows DOGE entering a bearish phase, with the price dropping below the cloud after a period of trading above it.
The cloud, which was previously mostly green, is now losing momentum. The Tenkan-sen line (blue line) has crossed below the Kijun-sen line (red line), confirming the negative sentiment. Additionally, the ADX for DOGE has increased, suggesting the downtrend is strengthening, which could signal continued bearish pressure in the short term.
Ichimoku DOGE Chart Shows Current Sentiment Is Bearish
The Ichimoku chart of Dogecoin shows that the recent price action has entered a bearish phase, with candles falling below the cloud after a long period when DOGE price went up and stayed within the cloud.
The cloud itself has maintained a bullish green hue throughout the period shown, despite starting to thin in recent periods.
Looking at the indicator lines, we see the faster moving Tenkan-sen line (blue line) has crossed below the slower Kijun-sen line (red line), confirming the bearish sentiment.
The leading lines of the cloud (light green and red lines) are quite flat, indicating a potential loss of momentum in the trend. The fact that Dogecoin price has fallen below both the cloud and the indicator lines indicates increased selling pressure during this time frame.
Dogecoin’s Current Downtrend Is Strengthening
ADX for DOGE is currently 26.3, up from around 17 just two days ago, showing that the downtrend is strengthening. An ADX value above 25 typically indicates a strong trend, and in this case, a rising ADX shows that DOGE’s bearish momentum is increasing.
This increase in ADX signals that the trend is becoming clearer and could continue to put downward pressure on DOGE prices in the short term.
ADX, or Average Directional Index, measures 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 or market fluctuates. 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 bearish.
This suggests that DOGE price may continue to decline unless there is a change in momentum, with the possibility of further declines unless there is a market reversal.
DOGE Price Forecast: 64% Correction Possible?
The EMAs for Dogecoin price clearly indicate that the cryptocurrency is in a downtrend, with the short-term lines crossing below the long-term ones. If this downtrend continues, DOGE price could test the nearest support level at $0.34.
If that level fails to hold, a deeper drop to $0.219 or even as low as $0.14 is possible, representing a massive 64% correction.
However, if DOGE price manages to reverse the current downtrend, it could encounter first resistance around the $0.42 mark.
If DOGE breaks this resistance, it could continue to rise to test the $0.46 and $0.48 levels next.
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