Dogecoin (DOGE) Price at Risk of Correction Amid Rising Selling Pressure

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As a seasoned crypto investor with battle scars from countless market cycles, I have learned to read charts like some people read tea leaves – with a mix of caution and hope. The current Dogecoin (DOGE) situation is reminiscent of a rollercoaster ride that I’ve been on before. The DOGE price hitting an all-time high since 2021 was like reaching the peak of the coaster, but the subsequent correction feels like the stomach-dropping descent.

As an analyst, I observed that on November 23, Dogecoin (DOGE) reached its highest price level since the beginning of 2021. However, in the past 24 hours, it has experienced a correction, dropping by around 12%.

If the current decline persists, Dogecoin (DOGE) might encounter support around $0.34. A more severe sell-off could push it down to $0.14. But if buying interest strengthens, DOGE may attempt to breach resistances at $0.43 and $0.48, with a long-term goal of reaching $0.50 – a level not seen since March 2021.

DOGE Ichimoku Cloud Shows The Sentiment Is Changing

In simpler terms, when looking at the Ichimoku Cloud chart for DOGE, it indicates a negative or bearish prediction for the price. This is because the current trading price is lower than both the Tenkan-Sen (the blue line) and Kijun-Sen (the orange line), demonstrating that the trend is moving downwards. Additionally, the price has fallen below the cloud, which consists of Senkou Span A and B lines, suggesting that a bearish trend is becoming more certain.

On the graph, the cloud (which is a technical analysis tool) is becoming thinner on its right side, indicating decreasing support. This makes it more probable that there will be additional pressure pushing prices lower.

If Dogecoin (DOGE) doesn’t manage to retake the key level and maintain itself above the Kijun-Sen, there might be an increase in bearish pressure, potentially causing the price to drop further. Yet, the relatively flat nature of the Kijun-Sen could serve as a minor obstacle for any potential upward movement, and a rebound over the cloud would suggest a possible change in trend direction.

Currently, the Ichimoku Cloud indicates that the Dogecoin price is experiencing a crucial stage where the bears are likely to maintain dominance unless a significant rebound takes place.

Dogecoin’s Downtrend Could Get Stronger

The Dogecoin DMI chart shows an ADX value of 22.84, where the positive direction (D+) stands at 13.5 and the negative direction (D-) is at 29.7. This suggests a possible change in the momentum’s direction, as the ADX, or Average Directional Index, gauges the strength of a trend. Values exceeding 25 signify a robust trend, regardless of whether it’s upward or downward.

Currently, a higher value of ‘D-‘ compared to ‘D+’ suggests that the bearish influence is stronger than the bullish one in determining Dogecoin’s price movement at this time.

Despite the ADX being at 22.84, indicating a relatively weak downtrend, the expanding distance between the D- and D+ lines signals an increasing bearish force.

This arrangement suggests that Dogecoin (DOGE) might be moving towards a downward trajectory, as sellers are more active than buyers. If the Average Directional Index (ADX) keeps increasing above 25 and the Down line (D-) continues to dominate, it could signal a stronger bearish trend, which may result in continued price drops.

DOGE Price Prediction: Can DOGE Reach $0.50 In November?

The moving average lines for Dogecoin indicate a change in investor feelings from optimistic to pessimistic, as the current price is now lower than its short-term moving averages.

To add on, these temporary trends are showing a decrease, which points to increasing selling activity and a lessening of the initial upward thrust. This negative shift in trend might imply that the Dogecoin price is shedding its previous bullish backing, possibly setting the stage for additional price drops.

Should the current downward trend intensify, the Dogecoin value may be put to the test at its critical support level of approximately $0.34. If this support doesn’t manage to withstand the pressure, the price could potentially plummet to around $0.14, representing a substantial 61% correction.

If the Dogecoin (DOGE) price is able to turn things around and resume its upward trend, it may encounter resistance at approximately $0.43 and $0.48. Overcoming these hurdles would likely propel DOGE towards $0.50, a price point not reached since March 2021, which could indicate a robust recovery for the cryptocurrency.

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2024-11-26 19:53