Dogecoin’s H4 chart delivered engaging bearish signal. According to a technical analysis published by popular analyst Dogecoin Trader Tardigrade on X, DOGE has just made a tidy rejection from Kumo, the resistance zone of the Ichimoku technical indicator cloud. This failure is now shaping the next phase of Dogecoin’s price action.
Kumo unchanging: what signals rejection
The technical chart shows that the price of Dogecoin, which was trading below the Ichimoku cloud, rose to the lower boundary of the indicator only to stop and reverse at the powerful resistance zone.
The rejection occurred as Dogecoin price tried to push out of the cloud from below on the H4 timeframe into the Trader Tardigrade zone identified as powerful resistance ranging from $0.09512 to $0.09564. The price tested the lower part of the cloud and was rejected, which led to a reversal of the downward trend. The analyst noted that when a cloud persists like this, the market tends to respect it, adding that the episode was Ichimoku analysis at its best.
The rejection confirms that sellers are still very much defending the $0.09512 to $0.09564 range. For context, trading below Kumo places the Dogecoin price in a bearish Ichimoku structure. Rejection also served to confirm resistance confirming the broader technical system.
Price levels to view
Tardigrade Trader’s H4 Ichimoku Chart has identified two crucial price levels that will determine Will there be a Dogecoin rally? expand further.
The first is the Kumo zone, ranging from USD 0.09512 to USD 0.09564, which the analyst means powerful resistance. This is the range that closed the recent rally and resulted in a complete rejection. The bearish structure on the H4 chart will remain intact as long as the price is below this band. Any push back into this zone should be closely monitored for further potential rejection.
Just below is Kijun-sen at $0.09354, which is marked as a medium strength resistance level. This baseline is just below the cloud and is the first significant resistance that Dogecoin bulls need to overcome before any recovery attempt can be taken seriously. Failure to break above $0.09354 on a retest would lead to further downward pressure.
At the time of writing, Dogecoin is trading at $0.09087, down 2.6% in the last 24 hours, meaning it has extended its losses since it faced tidy rejection from Kumo. On the other hand, the short-term outlook is for a continuation below current price levels following rejection, with Ichimoku Cloud not offering any levels of support given that the price is already below it.
Featured image from pngtree, chart from Tradingview.com
