Dogecoin has notably outperformed other leading meme coins in the last month. It posted a 4.43% increase, while its rivals, Pepe and Shiba Inu, saw their values plummet by 33% and 25.28%, respectively. However, despite these gains, bearish indicators suggest that Dogecoin’s upward trend might not last.
IntoTheBlock, an on-chain data provider, shared these statistics on X, which show that despite the broader market downturn affecting meme coins, Dogecoin has managed to secure modest gains.
Analyzing the technical indicators provides deeper insights. The Moving Average Convergence Divergence (MACD), a critical gauge of market momentum, has remained below its signal line since April 2. This placement traditionally signals a potential sell-off as shorter-term momentum falls behind the longer-term trend.
Additionally, the negative directional index, a part of the directional movement system that measures the strength of a price trend, stood higher than the positive index as of April 12, confirming a bearish outlook for the coin.
Moreover, the Chaikin Money Flow (CMF) index, which measures the volume-weighted amount of buying and selling pressure over a set period, also recorded a negative value. At -0.06, this indicates that more money is flowing out of Dogecoin than into it, a sign often associated with market weakness.
Besides these indicators, the overall sentiment in the meme coin market has dampened, with major assets recording significant declines. Dogecoin’s recent performance, though relatively better, may not be sustainable if these bearish trends continue. Additionally, analysis highlights a potential for increased volatility in meme coin valuations.
As of press time, Dogecoin is trading on a bearish note as the broad market continues to face corrections. Currently, DOGE is exchanging hands at $0.1472, down by 5% in the daily chart, while the weekly chart displays a decrease of 25%. Dogecoin’s market capitalization has dropped to $21 billion, a decrease of 5% since yesterday’s close, while the trading volume has seen a modest increase of 8% with a value of $2 billion.
Consequently, while Dogecoin currently stands as a leader among meme coins by showing resilience in a declining market, the indicators warn of potential challenges ahead. Investors should keep an eye on these developments as they could dictate the market’s direction in the coming sessions.
