DOGE has gained 26.61% over the past month. Market indicators suggest that Dogecoin could fall if a bearish crossover appears on DMI.
Dogecoin (DOGE) has fallen 8.05% since reaching a local high of $0.149 on October 21st. In fact, at the time of this writing, Dogecoin was trading at $0.137. This is an increase of 2.59% over the past week and the meme coin is up 26.61% on the monthly chart.
The month is still in the blue, but the uptrend appears to have lost momentum. This observation stems from the fact that DOGE soared 46.05% from $0.102 to $0.149 in early October.
Thus, recent price trends indicate that sellers are starting to dominate the market and meme coins are losing momentum.
Source: Tradingview
This change in market sentiment is evidenced by a bearish crossover. Looking at the directional index, the negative (-DI) exceeds the positive index +DI. At the time of writing, -DI was at 32 and +DI was above 29, after +DI declined over the past day.
This suggests that the downtrend is gaining momentum. In this case, ADX shot up from a low of 17 to a high of 32 within a week.
When an asset’s DMI is set this way, it suggests that sellers are starting to outnumber buyers and selling pressure is starting to increase. If this trend continues, Dogecoin will be at the beginning of a sustained downtrend.
What the Dogecoin chart suggests
Source: Coinglass
This bearish market sentiment was further reinforced by the fact that more investors are taking short positions. According to Coinglass data, the long/short ratio shows that 52.35% of investors took short positions in the past 24 hours.
This means that most investors expect DOGE prices to fall in the short term.
Source: Santiment
Additionally, Dogecoin’s price DAA divergence has remained negative for the past week, indicating that the bullish momentum is weakening. Therefore, the number of participants is decreasing.
Read Dogecoin (DOGE) price prediction: 2024-2025
This price increase is driven by speculation and not by strong fundamentals that usually precede a price correction.
Dogecoin is experiencing a change in momentum as the bullish momentum fades. If these market conditions hold, DOGE will experience a correction. In case of a decline, DOGE will find the next support near $0.12 in the short term.
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