A bearish fallout from a yearly falling wedge pattern suggested the Dogecoin(DOGE) price witnessed a significant freefall. However, the lower price rejection at the retest phase puts a possibility on the cards and traps the aggressive sellers.
Key points:
- The DOGE price broke under $0.10 after a 28.5% fall last week.
- The 24-hour trading volume in the Dogecoin coin is $1.56 Billion, indicating a 337% gain.
Source-Tradingview
The Dogecoin(DOGE) price fell sharply after the 2021 bull run resulting in the formation of a falling wedge. The downfall within the bearish pattern devalues market value by 88%.
The selling pressure has grown gradually within the bearish pattern and recently breaks below the support trendline and $0.10 with a bearish engulfing candlestick. However, the buyers temporarily take back the trend control at $0.080 to retest the broken trendline.
The higher price rejection due to selling faced near the broken trendline increases the chances of a post-retest reversal. Therefore, traders can expect a breakout entry once the market value crosses under $0.082 and can target the low of $0.045.
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The bearish theory will be invalidated if buyers find a closing above $0.10 and trap the sellers. In this case, the bulls can achieve the target of reaching the resistance trendline close to $0.13.
Technical indicator
This week’s sudden fall in DOGE market value undermines the bullish crossover of the 50 and 100-day EMA and might shortly regain a bearish alignment. However, the discussed bearish contingency possibility can find opposition near the EMAs, and traders can target it as an exit spot.
The possibility of a trend reversal increases with the VI lines displaying the start of another bullish crossover attempt. However, a post-retest reversal will sabotage the bullish attempt and continue the bear cycle further.
- Resistance levels- $23.1 and $25.6
- Support levels- $20.2 and $17.4
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