Downtrend Exhausted? Here’s Why DOGE Price May Have Bottomed at $0.055

In the daily time frame chart, Dogecoin shows an evident shift of a downward trend to sideways. Such price behavior reflects exhausted bearish momentum which leads to bottoming of a downtrend. This long-term consolidation can be marked by two converging trendlines also indicating the formation of the symmetrical triangle pattern. Here’s how this pattern can influence this Dog-themed memecoin.

Also Read: Dogecoin Developer Threatens to Quit if Switch to PoS is Conceived

Dogecoin Daily Chart: Key Points

• A symmetrical triangle pattern governs the current correction in Dogecoin
• A bullish reversal from the lower support trendline will set the coin price for a 50% upswing
• The 24-hour trading volume in the Dogecoin coin is $239.5 Million, indicating a 1.46% gain

Source-Tradingview 

For nearly two years, the Dogecoin price has been traveling a sideway trendline under the influence of a symmetrical triangle pattern. During this period, the coin price has rebounded four times from the lower trendline and thrice from the upper trendline indicating its impact on market participants.

Amid the July-August correction in the crypto market, the DOGE price plunged back to the pattern’s bottom trendline. For a long time, the dynamic support has recuperated bullish momentum and led to a strong bounce back in prices.

Thus, the traders bullish on Dogecoin can accumulate at this support and wait for an overhead trendline breakout for better confirmation of trend change. A bullish breakout from the upper trendline will intensify the bullish momentum and could lead the price rally to $0.11, followed by $0.16, and $0.221.

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

Can Dogecoin Prolong Existing Correction?

While the overall price behavior currently favors Dogecoin buyers, the coin price remains in a sideways trend until the two trendlines are intact. Usually, the asset price gradually narrows within the chart pattern and gives a decisive breakout once it’s near the peak of the triangle. However, a bearish breakdown from the pattern’s lower trendline will set the DOGE price for a massive correction.

• Exponential moving average: The flattish daily EMAs (20, 50, 100, and 200) also accentuate a sideways trend in DOGE price.
• Relative Strength Index: The daily RSI(31) at an oversold region reflects a high probability of bullish reversal.