Dogecoin price is at risk of correction due to increased selling pressure

Dogecoin (DOGE) price reached its highest level of 2021 on November 23, but has since entered a correction phase, falling 12% in the past 24 hours. The Ichimoku Cloud, DMI and EMA all show bearish momentum increasing, with DOGE trading below key levels and showing signs of weakening upward pressure.

If the downtrend continues, DOGE could test support at $0.34, with a potential drop to $0.14 if selling pressure increases. However, if it recovers, DOGE could challenge the resistance levels at $0.43 and $0.48, possibly aiming for the $0.50 mark, a milestone not reached since March 2021 .

Ichimoku Cloud Shows Changing Sentiment

DOGE’s Ichimoku Cloud chart shows a bearish outlook. The price is currently trading below both Tenkan-Sen (blue line) and Kijun-Sen (orange line), showing bearish momentum. The price has also dropped below the clouds (Senkou Span A and B), suggesting that the downtrend has consolidated.

Clouds are now shrinking on the right side of the chart, signaling weakening support, increasing the possibility of further downside pressure.

If DOGE cannot regain the clouds and sustain above Kijun-Sen, the bearish momentum is likely to accelerate, pushing prices lower. However, the Kijun-Sen’s flat base could act as a minor resistance, and if it rebounds above the clouds, this would point to a possible trend reversal.

Currently, Ichimoku Cloud indicates that the price of Dogecoin is in a critical phase, in which bears will continue to take control unless a strong recovery occurs.

Dogecoin’s Downtrend Could Be Stronger

Dogecoin’s DMI chart points to the ADX at 22.84, with D+ at 13.5 and D- at 29.7, highlighting the possibility of a change in momentum. ADX, or Average Directional Index, measures the strength of a trend, with values ​​above 25 indicating a significant trend, regardless of direction.

Meanwhile, D+ shows bullish strength, and D- shows bearish strength. In this case, the higher D- value compared to D+ confirms that bearish forces are currently dominating DOGE’s price action.

Although ADX at 22.84 shows that the downtrend is not really strong, the widening gap between D- and D+ indicates that the downward momentum is increasing.

This configuration suggests that DOGE is likely to enter a stronger downtrend, with selling pressure outweighing buying pressure. If ADX continues to rise above 25 while D- remains dominant, this could confirm a stronger bearish trend, leading to further price declines.

DOGE Price Forecast: Could DOGE Reach $0.50 In November?

Dogecoin’s EMAs show a shift in market sentiment from bullish to bearish, with the price currently trading below the short-term EMAs.

Furthermore, these short-term lines are trending down, showing that selling pressure is increasing and upward momentum is weakening. This bearish development shows that DOGE price is losing its previous bullish support, potentially paving the way for further price declines.

If the downtrend strengthens, Dogecoin price could test the critical support at $0.34. If this level fails to hold, the price could drop to $0.14, marking a significant 61% correction.

However, if DOGE price reverses its trend and regains bullish momentum, it could challenge the resistance levels at $0.43 and $0.48. A break above these levels could push DOGE to $0.50, a price level not seen since March 2021, marking a strong recovery.

General Bitcoin News