Dogecoin charts flash bearish after 16% drop | Credit: Hameem Sarwar
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Key Takeaways
DOGE has been down 16% in the past week, and it is struggling to rebound from bearish divergences.
The AO and MACD show weak momentum despite breaking above a falling wedge.
The DMI shows sellers are in control; ADX at 40.7 confirms the downtrend is strong.
Dogecoin (DOGE) price may struggle to recover meaningfully after shedding 16% over the past seven days.
The decline followed the formation of bearish divergences across multiple timeframes, signaling weakening momentum.
At press time, DOGE trades at $0.20, attempting to stabilize. But despite flickers of buying interest, the broader technical picture suggests the memecoin is unlikely to sustain a rebound in the near term.
Here’s why DOGE’s setup still favors caution over optimism.
Dogecoin Bounce Looks Weak
On the daily chart, Dogecoin’s price has broken above the upper trendline of its falling wedge. Typically, such a breakout suggests that sellers are losing control and buyers are beginning to push the price higher.
However, the Awesome Oscillator (AO) is telling a different story. The indicator’s reading has slipped into negative territory, showing that bearish momentum still outweighs bullish pressure despite the breakout.
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This divergence between DOGE price action and momentum suggests that the breakout may lack the conviction needed for sustained upside. Like the AO, the Moving Average Convergence Divergence (MACD) also shows a bearish outlook.
At press time, Dogecoin’s MACD reading remains in negative territory, signaling that bearish momentum is still in play. This weakness is also reflected in the Exponential Moving Averages (EMA) within the MACD.
The 26 EMA (orange) has crossed above the 12 EMA (blue), confirming a bearish crossover. This formation suggests that short-term momentum has shifted in favor of sellers, and any recovery attempt may face resistance.
On the 4-hour chart, the setup for Dogecoin also fails to inspire optimism. As of this writing, the price has dropped below the red line of the Supertrend indicator, flipping it into a zone of strong overhead resistance.
This position suggests that any near-term rallies could face immediate selling pressure as the red line of the Supertrend acts as a barrier to further upside.
Combined with the bearish MACD, AO, and EMA cross signals, this reinforces the view that DOGE remains under short-term downside risk.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
