This Bullish Pattern Can Pull Dogecoin Price Out of Market Correction and Trigger a 48% Move
Over the past five weeks, the dogecoin (DOGE) price has undergone a sharp correction phase, causing a drop from its peak of $0.105 to its current value of $0.07, representing a 31.6% loss. Amid the downturn across the cryptocurrency market, Doge’s price has adhered closely to a falling wedge pattern that is defined by two downsloping trendlines converging at a single point. Here’s how this pattern can offer a long entry opportunity to interested traders.
Key Points
- The ongoing correction in Dogecoin price will prolong until the wedge pattern is intact
- A bullish breakout from the pattern’s resistance trendline could encourage DOGE price for a 47.8% rally
- The 24-hour trading volume in the Dogecoin coin is $392 Million, indicating a 14% gain.
Source-Tradingview
At present, the DOGE price continues to hover above the lower trendline of the wedge pattern, trying to obtain suitable support despite a broader market sell-off. Moreover, the daily chart displays several long lower price rejection candles at the trendline, the buyers are accumulating at this trendline.
If the buying pressure persists, the coin price may rise some 6.5% and hit the overhead resistance trendline. Over the Dogecoin price to ride a sustained recovery, it needs to break the pattern’s resistance trendline with a daily candle closing above.
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This breakout could offer an early sign of a bullish recovery and would like to raise the coin price to the potential target of $0.081, $0.095, followed by $1.0475, registering a max gain of 47.8% from completing this pattern.
Technical indicators
Moving Average Convergence Divergence: The downsloping MACD(blue) and signal(Orange) below the lower into the bearish territory reflect a strong bearish momentum.
Exponential Moving Average: the daily EMAs(50, 100, and 200) concentrated near the $0.081 level increasing the resistance power of this level
Dogecoin Price Intraday Levels
- Spot rate: $0.0715
- Trend: Bearish
- Volatility: Medium
- Resistance levels- $0.081 and $0.095
- Support levels- $0.067 and $0.063
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