Here’s Why The Dogecoin Price Is At Risk Of 20% Downfall

Amid the last two months’ downfall in the crypto market, the Dogecoin price followed a famous bearish pattern called the descending triangle. The technical chart has identified this pattern as the DOGE prices reject from a downsloping trendline(yellow color line) and, on the other hand, maintained fixed neckline support at $0.073-$0.07(off-white range). In theory, the lower low formation in the price action indicates the gradual loss of bullish momentum, which encourage a breakdown from the neckline to bolster further downfall.

Key points:

• The Dogecoin price is wavering just below a high concentrated resistance zone near $0.073-$0.071.
• A bullish breakout from the resistance trendline will release the Dogecoin price from its ongoing downtrend.
• The 24-hour trading volume in the Dogecoin coin is $617.8 Million, indicating a 192% gain.

Source-Tradingview

On December 28th, Dogecoin gave a massive breakdown from the $0.073 support zone, intensifying ongoing selling pressure. However, with the ongoing uncertainty in the crypto market, the altcoin continues to waver just below the $0.073 mark, testing this level as valid resistance. 

Also Read: Breaking: Dogecoin Foundation Announces Development Fund, DOGE Price Jumps

This memecoin currently trades at $0.0716 with an intraday gain of 0.28%. Moreover, in the last two days, the daily candles showed higher price rejection at $0.073 resistance, projecting the sellers are defending the new resistance.

This increases the likelihood of the Dogecoin price turning down from the resistance trendline and triggering the next bear cycle. This potential downfall may breach the local support of $0.066 and plunge to the $0.057 accumulation zone, registering a 20% drop.

On a contrary note, the traders looking for a bullish entry opportunity can wait for the DOGE price to break the overhead trendline.

Technical indicator

RSI indicator: the daily-RSI slope is walking sideways despite a falling price action, indicating the bearish momentum is gradually weakening. This bullish divergence suggests the price may eventually break the overhead trendline.

EMAs: the 50-and-100-day EMAs are on the verge of a bearish crossover offering an additional sell signal for traders. 

Dogecoin Price Intraday Levels

• Spot rate: $0.071
• Trend: Bullish
• Volatility: High
• Resistance levels- $0.073 and $0.092
• Support levels- $0.071 and $0.057