Dogecoin (DOGE) has faced significant selling pressure recently, experiencing a 15% drop over the past week as it grapples to find a foothold. The prevailing technical indicators point towards a robust bearish trend.
Should this downturn persist, DOGE may soon test the support level at $0.142, and a breach beneath this point might drive it below $0.14 for the first time since October 2024. Alternatively, a resurgence in meme coin enthusiasm and a resurgence in buying activity could spur a recovery for DOGE, encountering key resistance marks at $0.19 and $0.22 hindering a potential shift in trend.
Dogecoin's Ichimoku Cloud configuration paints a bleak picture, with the price situated below both the blue Tenkan-sen and the red Kijun-sen. This positioning indicates a negative short-term momentum with challenges breaking above these hurdles.
The Ichimoku cloud ahead remains reddish, reinforcing the prevailing bearish sentiment, placing it well above the current pricing level.
While a move into the cloud may hint at a shift to a neutral phase, the existing bearish trend persists as long as DOGE fails to reclaim these lines.
Sellers clearly dominate the Dogecoin Directional Movement Index (DMI), with the Average Directional Index (ADX) at 39.1, significantly higher than its recent value of 17.1. This substantial rise in ADX bolsters the notion of an increasingly robust downtrend controlled by sellers.
The widening gap between the negative and positive directional indices signifies that the selling pressure outweighs buying interest significantly. Unless a notable reversal in momentum transpires, DOGE’s price is likely to face continued pressure.
Given the recent 18% decline in DOGE price, the path of least resistance appears to be downwards unless a notable shift in momentum occurs.
Despite the current bearish sentiment, if meme coin hype returns and buying pressure surges, DOGE could reverse its course and overcome key resistance levels, positioning it for a potential recovery. The initial hurdle at $0.19 could pave the way for broader upward movement, potentially leading DOGE to $0.22 and even $0.24 under strengthened bullish momentum.