Dogecoin's growth may slow due to weakening buying pressure.
Date: 2025-10-08 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Dogecoin (DOGE) has been steadily moving upward over the past two weeks, trading within an ascending channel on the daily chart. At the time of writing, the coin is valued at $0.2605, up 17% from two weeks ago. However, analysts are noticing a warning sign: a key momentum indicator is showing bearish divergence, which may indicate the current rally is limited and a possible price decline.
Chaikin Money Flow (CMF), an indicator reflecting capital inflows and outflows, has declined over this period and is currently at -0.08, below the zero line. Bearish divergence occurs when the price of an asset continues to rise while the CMF falls, signaling a reduction in the capital contributing to the rally. Historically, such divergences often foreshadow short-term pullbacks, meaning DOGE's growth may slow if buying interest fails to rebound.
On-chain data also shows a decline in activity among large investors. According to Nansen, DOGE holders with over $1 million in capital have reduced their positions by 1% over the past two weeks, leaving 4.43 million coins in their portfolios. Whales traditionally exert significant influence on the market: a decrease in their activity during a rally can signal a lack of confidence in continued growth and lead to caution among traders.
Technically, if buying pressure continues to weaken, DOGE could retreat to the lower boundary of the ascending channel, where the nearest support level is $0.2574. A breakout of this level could result in a deeper decline to $0.2018.
On the other hand, the emergence of new demand could push the price above the upper boundary of the current channel, where resistance lies at $0.2797. If this level is successfully broken, DOGE could reach $0.2980, continuing its short-term rally.
Overall, DOGE's current movement shows a combination of strong price growth and signs of waning interest from major market participants. This creates conditions for a possible correction, although the coin still retains potential for further strengthening if demand increases.
