Dogecoin’s bearish crossover: What it means for DOGE prices
Dogecoin has experienced a strong upswing over the past month hiking by 26.61%. However, DMI shows a bearish crossover.
- DOGE has surged by 26.61% over the past month.
- Market indicators suggest Dogecoin may decline as a bearish crossover appears on DMI.
Since reaching a local high of $0.149 on the 21st of October, Dogecoin [DOGE] has declined by 8.05%. In fact, at the time of this writing, Dogecoin was trading at $0.137. This marked a 2.59% increase over the past week with the memecoin gaining by 26.61% on monthly charts.
Although the month still remains green, the uptrend seems to have lost momentum. This observation arises from the fact that, at the start of October, DOGE surged from $0.102 to $0.149 hiking by 46.05%.
Thus, the recent price action shows the memecoin is losing momentum with sellers starting to gain control of the market.
This change in market sentiment is evidenced by a bearish crossover. When looking at the Directional Movement Index, the negative (-DI) has crossed over the positive index +DI. At press time, -DI at 32 was sitting above +DI at 29 after +DI had declined over the past day.
This suggests that the downtrend is gaining momentum. In this case, the ADX has surged from a low of 17 to a high of 32 within a week.
When an asset’s DMI is set like this, it suggests that sellers are gaining control with selling pressure starting to outweigh buyers. If this trend persists, Dogecoin would see a start of a sustained downtrend.
What Dogecoin charts suggest
This bearish market sentiment is further strengthened by the fact that more investors were taking short positions. According to Coinglass data, the long/short ratio shows 52.35% of investors have taken short positions over the past 24 hours.
This implies that most investors anticipate DOGE prices to decline near term.
Additionally, Dogecoin’s Price DAA divergence has remained negative over the past week signaling the bullish momentum is weakening. Therefore, there are fewer participants.
Read Dogecoin’s [DOGE] Price Prediction: 2024-2025
This price increase is driven by speculation and not by strong fundamentals, which usually precedes a price correction.
Dogecoin is experiencing a shift in momentum with bullish momentum weakening. If these market conditions hold, DOGE will experience a correction. A decline will see DOGE find its next support around $0.12 in the near term.
