DOGE market capitalization surpasses Porsche! But 2 indicators show weakening momentum, fearing a big dump in the short term?

Market Cap surpasses Porsche, DOGE is gaining momentum

Recently, the cryptocurrency market has once again stirred up waves, and the price of DOGE ($DOGE) has surged from 0.1 US dollars to a recent high of 0.48 US dollars this year, making DOGE the focus of the market again (as of the time of writing, the price of DOGE is 0.4064 US dollars). Its market capitalization has also reached 59.5 billion US dollars (approximately 1.93 trillion New Taiwan dollars), reaching the highest level since 2021. This figure has far exceeded the market capitalization of the well-known German car manufacturer Porsche, which is 28.6 billion US dollars (approximately 9,296 billion New Taiwan dollars), attracting widespread attention in the market.

Image Source: CoinGecko The market value of Dogecoin has reached 59.5 billion US dollars

The technical indicator shows weakening bullish momentum, and the market is in a wait-and-see mode.

However, Technical Analysis shows that the upward momentum of DOGE may be weakening. According to Ichimoku Cloud, the DOGE price is in a consolidation phase, with trading prices close to the Kijun-Sen and Tenkan-Sen. Currently, the price is hovering on the edge of the cloud layer (Senkou Span A and B), which means market momentum is uncertain. Although the price has not clearly fallen below the cloud layer, its proximity suggests that bullish momentum is weakening, and the cloud layer may become a key support area.

In addition, the green cloud layer structure shows that the mid-term support still exists temporarily, but the price fails to break through the Conversion Line and Benchmark Line with strength, reflecting market hesitation. If the DOGE price fails to re-stand at a higher level and falls below the cloud layer, it may indicate the beginning of a bearish trend. On the contrary, if the price can clearly break through the Benchmark Line with an increase in Trading Volume, the momentum of long positions may be reignited, and the price is expected to further rise.

Image source: BeInCrypto According to Ichimoku Cloud, the price of DOGE is currently in a consolidation phase, suggesting that bullish momentum is weakening.

Trend indicators weaken, increasing short-term pullback risks

Further technical indicator also supports the view that the market is entering a wait-and-see stage. According to the Average Directional Index (ADX) of DOGE based on the Directional Movement Index (DMI), it has dropped from 25 to 18.7 within a day, indicating a weakening trend strength. Typically, an ADX value above 25 indicates a significant trend, while below 20 means a weaker or non-existent trend. This downward trend suggests that the recent momentum of DOGE is waning, and the market may be entering a consolidation phase.

In addition, the positive directional indicator (D+) is 19.3, and the negative directional indicator (D-) is 17.7. The difference between the two is minimal, indicating a lack of clear direction in the market. Neither the buyers nor the sellers have taken control, and the price may fluctuate within a range. To establish a clear trend, D+ needs to rise significantly to confirm the recovery of long positions momentum, or D- needs to increase to indicate an increase in short positions pressure.

Image source: BeInCrypto According to the Directional Movement Index (DMI), the Average Directional Index (ADX) of DOGE dropped from 25 to 18.7 within a day, indicating a weakening trend strength.

Investors need to be cautious, pullback may become the norm.

Although DOGE has performed strongly recently, multiple technical indicators suggest that the upward momentum may be difficult to sustain. The MA (EMA) indicator implies a possible 'death cross' in the short term, indicating a potential shift towards a downward trend in price. If the DOGE price falls below the key support level of $0.36, it may further decline to $0.14, reaching the low point in early November.

In this case, investors should proceed with caution, closely follow the market trends and changes in technical indicators. Although DOGE's market capitalization once surpassed Porsche, market sentiment changes rapidly, and the short-term pullback risk should not be ignored. For investors who are optimistic about the long-term development of DOGE, patiently waiting for market adjustment may be a more prudent strategy.

【Disclaimer】There are risks in the market, and investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions in this article are appropriate to their specific circumstances. It is self-responsible to invest based on this.

"DOGEMarket Cap surpasses Porsche! But 2 indicators show weakening momentum, big dump in the short term?" This article was first published in "encryption city"