- 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.
Source: Tradingview
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
Source: Coinglass
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.
Source: Santiment
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.
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