Dogecoin (DOGE) has experienced a sharp decline, with its price plummeting by nearly 10% in the past 24 hours. This drop has pushed its market capitalization below the $60 billion threshold, signaling a significant shift in market sentiment. Technical analysis reveals that DOGE is entering a bearish phase, as illustrated by its position below the Ichimoku Cloud, a widely used indicator in cryptocurrency trading.
DOGE’s Bearish Turn Confirmed by Ichimoku Cloud
The Ichimoku Cloud chart highlights a transition to bearish momentum for DOGE. After an extended period of hovering above the cloud, the cryptocurrency’s price has now fallen below it. Previously green and bullish, the cloud is beginning to thin, reflecting declining market optimism.
A key signal of this bearish trend is the crossover of the Tenkan-sen (blue line) beneath the Kijun-sen (red line), reinforcing negative sentiment. Furthermore, the flat span lines within the cloud suggest a loss of upward momentum, intensifying selling pressure in the market.
Downtrend Gathers Strength with Rising ADX
The Average Directional Index (ADX), which measures the strength of market trends, has surged to 26.3 from 17 in just two days. An ADX value above 25 typically indicates a strong trend, and in DOGE’s case, it points to growing bearish momentum.
Additionally, DOGE’s D- value at 30.5 far surpasses its D+ value of 9.8, underscoring that the downtrend is the dominant market force. This suggests that without a significant change in sentiment, DOGE’s price is likely to face continued pressure.
Price Forecast: Further Declines or Potential Reversal?
DOGE’s price currently faces critical support at $0.34. A failure to hold this level could see the cryptocurrency tumbling further to $0.219 or even as low as $0.14, representing a potential correction of 64%.
However, should the market momentum shift, DOGE could first test resistance at $0.42. Breaking past this level may pave the way for a recovery, with targets at $0.46 and $0.48.
