Dogecoin (DOGE) recently reached its highest level since 2021 but is now experiencing a correction phase. In the past 24 hours alone, DOGE has dropped by 12%, indicating a growing bearish momentum. Key indicators such as the Ichimoku Cloud, DMI, and EMA all suggest that DOGE is trading below critical support levels, allowing for further downward pressure to intensify.
If the bearish trend persists, DOGE could test support at $0.34. Should this level fail to hold, there's potential for the price to plunge further to $0.14. Nevertheless, should a recovery occur, DOGE could aim for resistance levels at $0.43 and $0.48, eventually targeting the crucial $0.50 milestone which has not been achieved since March 2021.
The Ichimoku Cloud highlights a bearish sentiment for DOGE, with trading below the Tenkan-Sen and Kijun-Sen lines suggesting negative momentum. The price also rests below the cloud, confirming a prevailing bearish trend. A thinning cloud on the chart indicates weakening support, possibly heralding further price declines.
Additional technical indicators such as DMI reveal a shift in momentum, with an ADX of 22.84, paired with a D+ of 13.5 and D- of 29.7, demonstrating dominant bearish forces over bullish ones. The gap between D- and D+ emphasizes this growing bearish influence, suggesting DOGE is undergoing a downward shift.
Moreover, EMA lines show a downward trajectory, highlighting a shift in sentiment from bullish to bearish. The current price remains below short-term EMA lines, enhancing selling pressure. If the trend continues, DOGE might face price declines down to crucial support levels.
Despite these bearish indicators, there remains a possibility for DOGE to recover. If it breaks through resistance at $0.43 and $0.48, and then reaches $0.50 again, it would signify successful momentum reversal and recovery, counteracting the current downtrend.
