- DOGE price has increased over 5% in the past 24 hours.
- However, this rally may be short-lived as key indicators point to a decline.
Dogecoin’s [DOGE] According to data from a cryptocurrency analysis platform, the price has increased by more than 5% in the past 24 hours due to increased social activity in the past 24 hours Lunar Crash revealed.
According to the data provider, social-driven engagement and actions such as individual interactions (likes), comments, retweets, and upvotes related to meme coins totaled 30 million in the past 24 hours.
AMBCrypto found that among the top 50 meme coins by market capitalization, DOGE witnessed the highest social volume during the period studied.
Source: Santiment
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An evaluation of DOGE’s price performance on 24-hour charts reveals that some of the gains may be lost in the coming days.
First, this coin’s Aroon Up Line (Orange) returned 28.57% at press time. The Aroon indicator for an asset tracks its trend strength and potential trend reversal points in price movements.
If the Aroon rising line is close to zero, the uptrend is weak and a trend reversal is possible.
Additionally, DOGE’s Chaikin Money Flow (CMF) returned a negative value of -0.04. This metric measures the flow of money into or out of an asset over a specified period of time.
When it is negative, as in this case, it indicates a drain of liquidity from the asset and an increase in selling pressure.
A negative CMF value is a sign of market weakness and is often interpreted as a signal to take a short position.
Additionally, a look at DOGE’s Moving Average Convergence Divergence (MACD) indicator showed that bearish sentiment is prominent in the meme coin market.
A reading of this indicator reveals that the MACD line fell below the signal line on March 15, indicating the beginning of a short-term bearish cycle.
Confirming the bearish pressure on DOGE’s price, the dotted line that makes up the parabolic SAR indicator is above the price.
Source: DOGE/USDT on TradingView
Read the Dogecoin article [DOGE] Price prediction for 2024-2025
This indicator identifies potential trend directions and reversals. When the dotted line is above the asset price, it is considered a sign of heavy selling activity.
Traders take this as a signal to exit a long position or initiate a short position.
