Dogecoin (DOGE) price has been on a wild ride, up 180% in the last month but down 7.03% over the past seven days. As the undisputed leader of meme coins, DOGE boasts a massive $58 billion market cap, four times larger than its closest competitor, SHIB, at $14.5 billion.

While recent price action has highlighted DOGE’s dominance, indicators like the Ichimoku Cloud and DMI suggest its bullish momentum might be losing steam. Whether DOGE can sustain its rally or face a deeper correction will depend on how the current trend evolves in the coming days.

DOGE Ichimoku Cloud Shows a Bullish Zone

DOGE is currently trading above the Ichimoku Cloud, which is considered a bullish signal. The price is also supported by the Tenkan-sen (blue line) and Kijun-sen (red line), both trending upward, indicating strong short-term and medium-term momentum.

However, the narrowing gap between these lines suggests a potential slowdown in bullish momentum, hinting at caution for further price increases.

The cloud (Kumo) ahead is green, signaling that DOGE’s trend remains positive in the near future. However, with price movements consolidating near the top of the cloud, there is a risk of a potential retracement if DOGE fails to break above recent highs.

A drop below the Kijun-sen or into the cloud could indicate a weakening trend and a shift toward a bearish sentiment. For now, DOGE holders may watch closely for sustained momentum above the Tenkan-sen to maintain the uptrend.

Dogecoin Uptrend Isn’t That Strong Right Now

Dogecoin Directional Movement Index (DMI) chart shows its ADX at 22, significantly down from over 60 just a week ago. While DOGE remains in an uptrend, the falling ADX indicates that the trend’s strength is weakening, suggesting a possible slowdown in bullish momentum.

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Author: Tiago Amaral