DOGE Price Drops 20% in 24 Hours Amid Bearish Trends
The price of Dogecoin (DOGE) experienced a sharp reversal after surpassing the market capitalization of Porsche in early December this year. After a strong rally, DOGE is currently correcting, correcting 20% in the past 24 hours and nearly 30% in the past seven days.
This rapid decline suggests bearish pressure is intensifying, with technical indicators pointing to further downside risks. With the price of DOGE hovering near key support, traders are keeping a close eye on signs of stabilization or potential recovery amid rising prices. volatility.
Ichimoku Cloud Shows Bearish Pattern for Dogecoin
Ichimoku Cloud Atlas Dogecoin Highlighting a clear bearish trend. Prices are well below the Ichimoku cloud, and the cloud’s red line (Senkou Span A) and green line (Senkou Span B) form a thick downward sloping structure. This configuration indicates the presence of strong overhead resistance and reinforces the dominance of bearish momentum.
Furthermore, the blue Tenkan-sen line remains below the red Kijun-sen line, which is a bearish crossover that reflects continued weakness in the short to medium term. The green Chikou Span is below the clouds and price action, further confirming the bearish sentiment.
The descending nature of the red (Senkou Span A) and green (Senkou Span B) clouds ahead suggests that the bearish trend is likely to continue unless there is a major reversal.
If the downward trend continues dog price Further losses are likely, with support likely close to recent lows. A reversal would require price to break out of the clouds and see the blue turnaround line cross the red continuation line, but neither of those lines seems likely to happen anytime soon.
DOGE current downtrend is strong
this dog The DMI (Directional Movement Index) chart shows that the current trend is significantly bearish. Over the past three days, the ADX (Average Directional Index) value has increased significantly from 14.7 to 46.7, indicating that the strength of the trend (regardless of direction) has increased significantly.
The orange D- line represents negative movement and is currently at 45.7, which is significantly higher than the blue D+ line (5). This imbalance indicates that the downtrend is dominant and sellers overwhelmingly control the market.
ADX measures the strength of a trend, with key thresholds providing insights: ADX below 20 indicates a weak or directionless trend, values between 20 and 40 indicate a mild trend, and values above 40 indicate a strong trend. This is highlighted by ADX of 46.7 dog The ongoing downward trend is strengthening.
In the short term, the combination of high ADX, dominant D-line, and weak D+ line suggests that prices may move further bearish as the market lacks significant buying pressure to offset the dominance of selling.
Dogecoin Price Prediction: Further Corrections Ahead
If the current downward trend continues, dog price The decline is likely to continue towards the next key support level at $0.219. This level is a key area where buyers may attempt to stabilize the price; however, if the selling pressure persists and this support is broken, the price could drop to $0.14.
Such a move would represent a further 48% retracement from current levels, showing the severity of the bearish momentum. Given the dominance of sellers and the strong downward trend highlighted by recent technical indicators such as the DMI, this remains a possibility unless there is significant buying interest.
On the other hand, if dog price If it manages to regain positive momentum, the price could rally towards $0.34, which is the first significant resistance level. A successful breakout of this area could pave the way for further gains to $0.43, a potential gain of 59% from current prices.
Achieving such a recovery will likely require a shift in sentiment, strong buying pressure and a reduction in bearish dominance.
Disclaimer
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