Dogecoin (DOGE) price faces a possible transition to a more pronounced downtrend, as recent technical signals suggest increasing bearish momentum.
While selling pressure is building, key support levels remain in focus and could play a pivotal role in determining the next move. The coming days may reveal whether DOGE continues its decline or stage a reversal to resistance levels.
DOGE Arun indicator shows bearish status
Dogecoin’s Aroon indicator is currently showing a clear bearish trend, with Aroon down at 92.86% and Aroon up at only 7.14%. This means that while DOGE recently made new lows, the upward momentum is weak due to the lack of recent highs.
A high Aroon Down value indicates strong downward pressure and indicates that the market is trending downward. Aroon Up is nearly flat, reflecting minimal buying interest or bullish momentum, further confirming that DOGE is trending down.
The Aroon indicator is a technical indicator used to identify a trend and the strength of that trend. It consists of two lines, Aroon Up and Aroon Down, which measure the amount of time that has passed since the recent high and low prices, respectively. If Aroon Up is close to 100%, it means the asset has recently reached new highs, indicating strong bullish momentum.
Read more: How to buy Dogecoin (DOGE) and everything you need to know
DOGE Arun Chart. Source: TradingView
Conversely, if Aroon Down is close to 100%, it indicates that the asset has made a new low, indicating a strong bearish trend. The interaction of these two lines helps traders assess whether an asset is trending, in what direction, and the potential strength of that trend.
Historically, DOGE’s Arun chart has shown frequent changes between upswings and downswings, but the general sentiment is bearish at the moment. The outlook for DOGE remains weak in the short term unless Aroon Up starts to move significantly higher and suggests new highs.
Dogecoin CMF just turned negative
The Chaikin Money Flow (CMF) indicator for Dogecoin (DOGE) is currently reading -0.06, indicating mild bearish momentum. CMF fluctuates between -1 and 1, with values near zero often indicating indecision or neutral momentum. However, the fact that it is slightly negative suggests that selling pressure is outweighing buying pressure.
Chaikin money flows measure the volume-weighted average of accumulations and distributions over a specified period of time (usually 20 or 21 periods). This helps traders identify whether the market is accumulating (buying pressure) or diversifying (selling pressure).
Positive CMF values indicate accumulation or buying pressure, while negative values indicate distribution or selling pressure. The closer the value is to 1 or -1, the stronger the trend. A number close to zero suggests a balance between buyers and sellers.
DOGE Chaykin’s money flow. Source: TradingView
CMF has been fluctuating above and below the zero line in recent weeks, indicating alternating periods of buying and selling. Peaks above 0.20 in mid-August and late September suggest strong buying pressure in the short term.
However, while not very strong at the moment, the recent dip into negative territory, especially towards the end of the chart, confirms that the selling pressure is starting to regain control.
DOGE price prediction: strong correction ahead?
Dogecoin (DOGE)’s short-term EMA line is below its long-term EMA line, indicating a possible transition to a bearish trend. This type of crossover is often seen as a warning that the market may be entering an even longer period of decline, as short-term momentum weakens relative to the long-term price average.
The Chaikin Money Flow (CMF) indicator shows that the current downtrend is not very strong, but the formation of a death cross on the EMA line indicates that this selling pressure may intensify in the coming days. suggests.
The Exponential Moving Average (EMA) is a trend-tracking indicator that gives more weight to recent price data and allows you to react quickly to market changes. When the short-term EMA falls below the long-term EMA, it often indicates increasing bearish momentum and could lead to further declines.
Read more: Dogecoin (DOGE) Price Prediction 2024/2025/2030
DOGE EMA line and support and resistance. Source: TradingView
If the downtrend continues, DOGE price may test support near the $0.097 level. If this support fails to hold, the next important level could be $0.088 or even $0.080.
However, if the trend reverses, DOGE could retest the $0.108 and $0.11 resistance levels. A breakout above these could pave the way for a rally towards the $0.13 level.
Disclaimer
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