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Highlights
- A bullish breakout from the pennant pattern will trigger a directional rally in Dogecoin price.
- The coin price above daily EMAs(20, 50, 100, and 200) reflects the long-term trend in bullishness.
- The 24-hour trading volume in Dogecoin is $2.05 Billion, indicating a 51% loss.
Dogecoin Price: The weekend downturn in the cryptocurrency market significantly impacted Dogecoin’s value, leading to a 22% drop from $0.192 to $0.15. As Bitcoin’s price correction persists, DOGE sellers hint at a potential fall below the 50% retracement level. Nevertheless, this retracement is forming a bullish continuation pattern known as a pennant, which could empower buyers to regain momentum for recovery
Also Read: 4 Under $1 Crypto Gems To Buy With 1000X Potential In 2024
Will $0.15 Support Hold Amid Market Correction?
Dogecoin (DOGE), the largest memecoin by market cap, has witnessed a surge in volatility recently evidenced by the long-wick rejection candle in the daily chart. However, the consolidation resonating within two converging trend lines indicates the formation of a bullish continuation pattern called Pennant.
The nature of this pattern suggests the DOGE price exhausted from the recent rally which surged its price from $0.084 to $0.206 and needed a minor pullback to regain its strength.
With a 6.9% intraday loss, the Dogecoin price teases a breakdown below the pattern’s lower trendline. If the market-wide correction bolstered sellers to break this support, the supply pressure will accelerate and invalidate the bullish thesis.
The post-breakdown fall may have plunged the memecoin value to $0.124 support.
Also Read: Meme Coins Outperforming Bitcoin This Week
Dogecoin Price Hints Breakout Strategy for the Next Fortnight
If the patterns hold true, the coin price may rebound from the lower trendline to continue the current consolidation. For this Dogecoin price to return to the recovery trend, the Buyer must break the pattern’s upper trendline. The pattern developed on a 4-hour chart hints at another 1-2 weeks of consolidation before a decisive breakout.
The potential breakout may surpass $0.2 and hit a theoretical target of $0.26.
Technical Indicator
- Exponential Moving Average: A fasting moving 20-day EMA offers immediate support for buyers to prevent further correction.
- Relative Strength Index: The daily RSI slope downtick at 54% reflects a waning bullish momentum in the market.
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