Dogecoin fell 12% in the past week: Will the bearish momentum continue?

Dogecoin (DOGE) continues to face strong selling pressure, losing more than 12% of its value in the past week as market sentiment shows no signs of improvement.

Technical signals present a mixed picture: the Ichimoku cloud reveals early signs of potential momentum reversal, while the (EMA) exponential moving averages maintain a bearish structure. Notably, the BBTrend indicator has recovered from the negative zone, suggesting that the downtrend may be gradually weakening, although price action remains fragile.

The Ichimoku Cloud of Dogecoin indicates a potential momentum change

Dogecoin's Ichimoku Cloud chart clearly reflects recent fluctuations and momentum shifts in the market.

Initially, the price of DOGE showed a clear downward trend from the end of March, consistently trading below the cloud. The Conversion line ( green) crossed below the Base line ( red), confirming the dominance of selling pressure. At the same time, the cloud also gradually narrowed in thickness before changing color, signaling a change in market structure.

The Ichimoku Cloud indicator on the DOGE/USDT 4-hour chart | Source: TradingView However, recently, there are signs that momentum may be reversing. The price is approaching the lower boundary of the cloud, while the Conversion Line starts to rise towards the Base Line. This indicates that buying pressure is showing signs of increasing, although the price has not clearly broken out of the contested area.

Notably, the forward cloud structure continues to show uncertainty in the short term. Traders will need to monitor whether the Conversion Line can cross above the Base Line and whether the price can maintain above the cloud – this will be an important signal confirming a more sustainable upward trend.

BBTrend of Dogecoin: Selling pressure weakens but cannot reverse yet

The BBTrend indicator of DOGE is currently at -11.78, a significant improvement from the extreme -13.96 of yesterday but still remains in the negative zone.

The BBTrend indicator of DOGE | Source: TradingViewAlthough there have been three consecutive days of decline, the indicator is showing signs of a slight recovery. This suggests that selling pressure may be weakening. However, as the indicator remains below the -10 threshold – a level that often reflects strong bearish momentum – the market trend has not yet fully shifted positively.

Although Dogecoin is approaching the oversold zone, to confirm that the downtrend has truly exhausted, BBTrend needs to rise strongly back to the neutral zone. In this case, DOGE could enter a technical rebound or a consolidation phase before experiencing larger fluctuations.

Can Dogecoin rise to $0.20?

The EMA structure of Dogecoin still leans towards a bearish trend, as the short-term exponential moving averages continue to be below the long-term averages, reflecting a weakening momentum with no signs of improvement.

DOGE/USDT 4-hour chart | Source: TradingViewHowever, if the trend reverses and the short-term EMA lines cross above the long-term line, DOGE may test the important resistance level at $0.179. Successfully conquering this level will open up opportunities for higher price targets.

Conversely, if selling pressure persists, Dogecoin risks revisiting the strong support area at $0.16 – a zone that has helped maintain the price in the past.

Once this support level is broken, DOGE may face increased selling pressure, pulling the price down to a deeper support area at $0.14, marking a significant correction from the current level.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions.

• SEC's PoW declaration: A potential catalyst for the price growth of BTC, DOGE, and LTC in 2025
• Elon Musk stated that the U.S. government has no plans to use Dogecoin.

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