Dogecoin (DOGE) Price Declines 10% in 24 Hours, Loses $60 Billion Market Cap

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As a seasoned researcher with years of experience navigating the volatile crypto markets, I can confidently say that the Ichimoku Cloud chart for Dogecoin (DOGE) is currently signaling a bearish phase. The cloud’s loss of momentum and the Tenkan-sen crossing below the Kijun-sen are clear indicators of this trend.

Dogecoin (DOGE) price has dropped nearly 10% in the last 24 hours, falling below the $60 billion market cap threshold. The Ichimoku Cloud chart shows DOGE entering a bearish phase, with its price dropping below the cloud after a period of trading above it.

The cloud, once primarily green, is slowing down. The Tenkan-sen (blue line) has dipped beneath the Kijun-sen (red line), suggesting a negative outlook. Moreover, the ADX for DOGE is increasing, suggesting that the downward trend is intensifying. This might imply additional short-term pressure on the price, potentially leading to further decreases.

DOGE Ichimoku Cloud Shows The Sentiment Is Now Bearish

The Ichimoku chart for Dogecoin indicates that the current market trend has shifted towards a bearish stance. Previously, the Dogecoin price had been moving above and within the Ichimoku Cloud, but now the candles are falling below this cloud, signaling a potential downturn in the price action.

Over the specified period, the cloud has largely been green, indicating a bullish trend. However, it’s becoming less dense in more recent times.

By examining the trend lines, it’s noticeable that the quicker Tenkan-sen (represented by a blue line) dips beneath the more sluggish Kijun-sen (marked by a red line). This crossover supports a negative outlook.

The main sections of the cloud (lines in light green and red) have remained fairly level, hinting at a possible slowdown or stall in the ongoing trend. This is because the value of Dogecoin has dropped below not only the cloud but also the accompanying indicators, which indicates an increase in selling pressure during this period.

Dogecoin Current Downtrend Is Getting Stronger

The current ADX (Average Directional Movement Index) for Dogecoin stands at 26.3, which is higher than its previous value of approximately 17 two days back. This increase indicates that the downward trend in Dogecoin’s price is growing stronger. Generally, an ADX above 25 signals a robust trend, and in this context, the escalating ADX suggests that the bearish pressure on Dogecoin is becoming more pronounced.

An increase in ADX suggests that the market trend is growing clearer, potentially persisting to apply downward force on Dogecoin’s (DOGE) price over the near future.

The Average Directional Index (ADX) assesses a trend’s strength, scoring between 0 and 100. Values surpassing 25 suggest a robust trend, while those below 20 typically signal a weak trend or a fluctuating market. Currently, DOGE has an ADX of 30.5 for D- (downward trend) and 9.8 for D+ (upward trend). Notably, the downward trend’s strength is significantly greater than that of the upward trend, suggesting that the prevailing force in the market is a downtrend.

As a crypto investor, I’m observing that the trend for Dogecoin (DOGE) seems to be heading downwards, and it might persist unless there’s a change in direction. If the market doesn’t show signs of a reversal soon, we could potentially see more price drops.

DOGE Price Prediction: A Potential 64% Correction?

Looking at the Moving Average (EMA) of Dogecoin’s price, it appears to be in a descending trend. In simpler terms, the temporary averages are moving below the longer-term ones, suggesting a possible bearish continuation. If this downward momentum holds, the value of Dogecoin might approach its next significant support level at approximately $0.34.

If the current level doesn’t maintain, there’s a possibility it might fall more significantly, reaching approximately $0.219, and potentially dipping as low as $0.14. This potential drop represents a significant decrease of about 64%.

If the Dogecoin price can break free from its present downward trajectory, it might initially encounter resistance near the $0.42 level.

If DOGE manages to surpass this current barrier, it may proceed to challenge the prices at around $0.46 and $0.48.

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2024-12-10 22:06