|
Getting your Trinity Audio player ready...
|
Key Takeaways:
- Bearish momentum persists despite Dogecoin’s breakout above its falling wedge pattern.
- Technical indicators like MACD, AO, and DMI suggest sellers remain in control.
- DOGE price may drop to $0.17 or lower unless strong buying pressure returns.
Dogecoin (DOGE) continues to face headwinds despite a recent technical breakout, shedding 16% over the past week. While the price is currently hovering around $0.20, analysts caution that the memecoin remains under short-term downside risk due to bearish momentum indicators across multiple timeframes.
Breakout Lacks Momentum Confirmation
On the daily chart, DOGE recently broke above the upper trendline of a falling wedge—a pattern typically seen as bullish. However, both the Awesome Oscillator (AO) and the Moving Average Convergence Divergence (MACD) contradict the bullish breakout. The AO has slipped into negative territory, while the MACD remains bearish with a downward crossover, signaling that sellers still dominate the market.
These indicators suggest that the breakout may lack the conviction required for a sustainable recovery.
Supertrend and DMI Underscore Bearish Outlook
The 4-hour chart paints a similarly cautious picture. Dogecoin has fallen below the red line of the Supertrend indicator, converting it into a resistance zone. Combined with a bearish MACD and negative AO readings, the near-term outlook remains unfavorable for bulls.
Further reinforcing this bearish narrative, the Directional Movement Index (DMI) shows the -DMI (21.21) significantly higher than the +DMI (13.4), confirming seller dominance. The Average Directional Index (ADX) at 40.70 indicates a strong ongoing trend, amplifying downside risks.
Price Range: $0.17 Downside, $0.26 Upside
If the bearish trend continues, DOGE could slide further toward $0.17 or even $0.10. Conversely, a shift in sentiment and increased buying pressure might push the price toward $0.26—but the path to recovery remains steep.
While Dogecoin’s recent breakout may appear promising on the surface, deeper technical analysis suggests caution. With multiple momentum indicators flashing red and resistance zones overhead, DOGE is likely to remain under pressure unless bullish volume returns decisively. Investors should monitor key support levels closely as the memecoin navigates its next move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Dogecoin Price Slips Below Support Amid Bear Pressure
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
