Dogecoin Price is at Risk of 10% Downfall Before the Next Recovery Cycle Begins

Amid the recent growth in dogecoin price, the buyers gave a massive breakout from the resistance trendline of the long-coming wedge pattern. This breakout has set this memecoin for a higher possibility for uptrend continuation which pushed the price to $0.11. However, the coin price is currently in a post-breakout retest phase meant to check suitability at reclaimed levels. Here’s how you may profit from the breakout of this bullish pattern.

Key Points

• The higher price rejection wick attached to the daily candle indicates the exhausted bullish momentum and the higher chance of price correction to the lower levels.
• This potential correction may tumble the prices by 10% before obtaining significant support to lead a bullish trend.
• The 24-hour trading volume in the Dogecoin coin is $1.69 Billion, indicating a 58% loss.

Source-Tradingview

As the exhausted DOGE buyers fail to sustain the bull run driven by the Twitter logo change, the market value of the memecoin succumbs to high selling pressure. Bears sitting at the psychological mark of $0.10 absorbed the rising demand resulting in higher price rejection in a daily candle.

The price action analysis shows an evening star pattern forming, however, this comes as the retest of the wedge pattern breakout. Moreover, the lack of volume support in the current bearish candle supports the retest theory.

Currently, the Dogecoin price trades at $0.092 with an intraday fall of 3.27% increasing the likelihood of further selling to retest the $0.084 support level. 

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Sideline sellers can find short-term entry opportunities to leverage the retest phase, however, holders waiting to add more DOGE should wait for the retest. Upon retest, if the prices sustain above the $0.084 mark, a bull run to the wedge pattern peak at $0.11 is possible, accounting for a 30% jump.

On the other hand, if the retest fails, Dogecoin prices can spiral down to the $0.70 support level.

Technical indicators

MACD: A significant gap between the MACD(blue) and the signal(Orange) indicates a strong buying sentiment in the market.

EMAs: the 200-day EMA slope wavering near the $0.084 mark increases the support strength of this level.

Dogecoin Price Intraday Levels

• Spot rate: $0.093
• Trend: Bearish
• Volatility: Medium
• Resistance levels- $0.098 and $0.0105
• Support levels- $0.092 and $0.084