Can Dogecoin Price Continue To Recover Amid Market Uncertainty?

The Dogecoin price has witnessed a sustained recovery since the beginning of 2023. The coin price rallied 36% since the January low of $0.069 and reached the current price of $0.0926. However, with the upcoming FOMC meeting, the crypto market showed signs of weakening bullish momentum and growing uncertainty. Moreover, a bearish pattern spotted in the Dogecoin chart suggests an upcoming retracement.

Key Points:

• A rising wedge pattern formation sets Dogecoin price on a 15% downfall
• The ongoing bullish recovery will remain intact until the coin price sustain above the pattern’s support trendline
• The 0.071-$0.068 trading volume in the Dogecoin coin is $1.35 Billion, indicating a 149% gain.

Source-Tradingview

The Dogecoin price shows the formation of a rising wedge pattern in the daily time frame. This bearish continuation pattern occurs in uptrends and indicates a potential trend reversal. It is formed by two upward-sloping lines converging towards each other, creating a triangular shape. In theory, this pattern signals a slowdown or lack of buying pressure, making it more likely for the price to decline.

By the press time, the DOGE price trades at $0.91, with an intraday gain of 5%. Amis ongoing uncertainty, this sudden buying pressure could be backed by the recent news that DogecoinFan-Elon Musk has started the procedure to obtain regulatory licenses in the U.S. for Twitter payments. As for now, the payment on Twitter may utilize fiat currency, but the use of cryptocurrencies in the near future is high. 

Anyhow, the Dogecoin price wobbling inside the wedge pattern needs a genuine breakout to initiate a direction rally. Considering the most likely outcome and negative market sentiment, the memecoin could break the lower support trendline. 

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This potential breakdown could tumble the DOGE price by 15% to revisit a local support zone of $0.079.

Technical Indicator

RSI– despite the rising price action, the daily RSI slope walking sideways indicates some weakness in bullish momentum.

EMAs: Along with the support trendline, the rising 20-day EMA slope offers dynamics support to the Dogecoin price. Moreover, a bullish crossover between the 20-and-200-day EMA tries to prolong the ongoing rally.

Dogecoin Price Intraday Levels

• Spot rate: $0.0928
• Trend: Bullish
• Volatility: Medium 
• Resistance levels- $0.1 and $0.112
• Support levels- $0.079 and $0.071