Technical indicators predict Dogecoin (Doge) price is at risk of falling

Dogecoin (Doge) price is facing the possibility of a stronger turn to the downside, as recent technical signals suggest that bearish momentum is increasing.

Although selling pressure has increased, key support levels remain in focus and could play a key Vai in determining the next move. The coming days will likely reveal whether Doge continues its downtrend or if there is a reversal towards resistance levels.

Doge Aroon Indicator Shows Bearish Condition

Dogecoin ’s Aroon indicator currently shows a clear downtrend, with Aroon Down at 92.86% and Aroon Up at just 7.14%. This means that Doge has just made a new low, while the bullish momentum is weak, as there have been no recent new highs. A high Aroon Down value indicates strong bearish pressure, suggesting that the market is trending down. With Aroon Up almost flat, it reflects minimal buying interest or bullish momentum, further confirming that Doge is in a downtrend.

The Aroon indicator is a technical indicator used to determine trends and the strength of those trends. It consists of two lines — Aroon Up and Aroon Down — that measure the number of periods that have passed since a recent high and low, respectively. When Aroon Up is near 100%, it means that the asset has just made a new high, indicating strong upward momentum.

Conversely, when Aroon Down is close to 100%, it shows that the asset has made a new low, indicating a strong downtrend. The interaction of these two lines helps traders assess whether the asset is in a trend, in what direction, and the potential strength of that trend.

Historically, Doge ’s Aroon chart shows frequent swings between bullish and bearish moves, but currently, the prevailing sentiment is bearish. Unless Aroon Up starts to rise significantly, indicating a new high, the outlook remains weak for Doge in the short term.

Dogecoin CMF Index Just Turned Negative

Dogecoin (Doge)’s Chaikin Money Flow (CMF) is currently at -0.06, indicating a slight decrease in momentum. The CMF ranges from -1 to 1, and a value near zero typically indicates indecision or neutral momentum. However, its slight negative reading suggests that selling pressure is outweighing buying pressure.

The Chaikin Money Flow indicator measures the volume-weighted Medium of accumulation and distribution over a given period of time, usually 20 or 21 periods. It helps traders determine whether the market is accumulating (buying pressure) or distributing (selling pressure).

A positive CMF value indicates accumulation or buying pressure, while a negative value indicates distribution or selling pressure. The closer the value is to 1 or -1, the stronger the trend. A reading near zero indicates a balance between buyers and sellers.

In recent weeks, the CMF has fluctuated above and below the zero line, indicating alternating periods of dominant buying and selling pressure. Peaks above 0.20 in mid-August and again in late September indicate brief periods of stronger buying pressure.

However, the recent drop into negative territory, especially towards the end of the chart, confirms that selling pressure has started to regain control, although not as strong at this point.

Doge Price Prediction : A Strong Correction Coming?

Dogecoin (Doge)’s short-term EMAs are crossing below the long-term EMAs, indicating a possible bearish reversal. This crossover pattern is often XEM as a warning that the market may be entering a more extended period of decline as short-term momentum weakens relative to long-term Medium prices.

Although the Chaikin Money Flow (CMF) indicator shows that the current downtrend is not too strong, the formation of a death cross in the EMAs suggests that this selling pressure could intensify in the coming days.

Exponential moving Medium (EMAs) are trend-following indicators that place more weight on recent price data, making them more responsive to market changes. When the shorter-term EMAs cross below the longer-term EMAs, it is often a sign that bearish momentum is increasing, which could lead to further downside.

If the downtrend continues, Doge price will likely test the support level around $0.097. If this support level fails to hold, the next important levels could be $0.088 and possibly as low as $0.080. However, if the trend reverses, Doge will likely retest the resistance levels at $0.108 and $0.11. A break above these levels could pave the way for a rally towards $0.13.

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