Dogecoin's Bearish Cross: What Does It Mean for DOGE Prices?
Recently, the market trend of Dogecoin (DOGE) has attracted widespread attention. In the past month, Dogecoin has surged by 26.61%, however, since reaching a local peak on October 21, it has dropped by 8.05%, and is currently trading at $0.137.
Market indicators are showing a bearish cross. As the DMI shows a bearish cross, the negative index (-DI) has crossed above the positive index (+DI), and the ADX has surged from 17 to 32 within a week. This indicates that the downward trend is gaining momentum, meaning that sellers are starting to control the market, and selling pressure exceeds that of buyers.
More investors shorting has further strengthened the bearish market sentiment. According to Coinglass data, 52.35% of investors have held short positions in the past 24 hours, indicating that most investors expect DOGE prices to decline in the short term.
Additionally, Dogecoin's price DAA divergence has been negative over the past week, suggesting that bullish momentum is weakening and participation is decreasing.
The price increase of Dogecoin is mainly driven by speculation rather than strong fundamental support. If market conditions remain unchanged, DOGE is likely to experience a correction. In the short term, Dogecoin may find its next support around $0.12.
Investors need to closely monitor Dogecoin's market dynamics and make investment decisions cautiously.
