Dogecoin faces potential challenges as momentum weakens

Dogecoin (CRYPTO:DOGE) has shown signs of both positive price movement and possible slowdown, with recent indicators pointing to a mix of bullish momentum and potential challenges ahead.

The cryptocurrency is nearing key resistance levels at $0.135 and $0.128, and its ability to break through these points may determine its next move.

The Bollinger Bands Trend (BBTrend) indicator for DOGE recently reached its highest point since May 2024, surpassing 15, indicating strong market activity.

However, a slight dip from this peak suggests that the momentum may be weakening.

If the BBTrend remains above 12, DOGE could maintain its current trend, but further declines could signal a period of consolidation or a reversal in price movement.

The Average Directional Index (ADX), which measures trend strength, has also shown a decrease, dropping from a high of 45.69 to 33.68.

While this value still suggests a strong trend, the drop could indicate that DOGE’s upward momentum is losing strength.

If the ADX continues to fall, then DOGE may face difficulties in sustaining its recent gains.

DOGE’s Exponential Moving Averages (EMA) recently experienced a golden cross, a bullish indicator that led to a 30% price increase.

However, the short-term EMA has started to weaken, which could be a sign that the price movement is slowing.

If DOGE is unable to break through resistance levels at $0.135 and $0.128, it may drop to support levels around $0.098 or $0.089.

At the time of writing, the Dogecoin price was $0.1143.