Dogecoin Price Analysis: Will $DOGE Price Surpass $0.08 Before July End

Dogecoin Price Analysis: The Dogecoin price has been riding a recovery rally over the past six weeks, and recorded 40% growth as it surged from a low of $0.53 to the current price of $0.0745. The rising price does follow the Dow theory of uptrend with new highs and lows, but the rejection candles at swing highs reflect the overhead supply pressure is intact. Amid this rally, the daily chart showed the formation of a bearish continuation pattern called an inverted pennant pattern and the possibility of extended downfall.

Also Read: This Technical Breakout on Dogecoin (DOGE) Could Lead to 23,200% Price Rally

Dogecoin Price Daily Chart

• The inverted pendant pattern indicates the Dogecoin price could witness a sharp correction in the near future.
• The $0.785 horizontal level aligned with the 50% FIB level creates and strong resistance barrier
• The 24-hour trading volume in the Dogecoin coin is $739.5 Million, indicating a 24% gain

Source-Tradingview 

The rising Dogecoin price is facing constant resistance from the resistance trendline of a pennant pattern. For over a month, the coin price has shown several reversals from this dynamic resistance indicating buyers are failing to maintain its bullish momentum.

Earlier today, the DOGE price showed nearly 8% and tried to poke through the overhead trendline. However, the intraday gain is now halved and the rejection attached to the daily candle indicates a possibility for another reversal. 

The potential pullback could tumble the popular memecoin 4-5% and hit the lower trendline. 

A possible breakdown from the pattern’s support trendline will release the selling pressure and may prolong the downward trend to $0.0635, followed by $0.058, and $0.053

[converter id=”doge-dogecoin” url=”https://coingape.com/price/converter/doge-to-usd/?amount=1″]

Will DOGE Price Recovery Rally Surpass $0.785?

Considering the prevailing downtrend in Dogecoin price is intact, the current recovery rally has so far reclaimed the 32.6% Fibonacci retracement level. With sustained buying, the coin price may reach the 50% FIB mark at $0.785. This combined resistance could act as a strong barrier against buyers and assist sellers to resume prior downtrend.

• Fibonacci Retracement Level: A pullback to 50% FIB level is still considered healthy for the current trend cycle. However, if the DOGE price surpasses this barrier it would indicate weakness in bearish momentum.
• Relative strength index: The daily RSI slope above 60% sufficient buying momentum to prolong the current recovery rally.