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Highlights
- A rising wedge pattern leads the current recovery trend in DOGE
- Dogecoin is currently trading at $0.168, having gained 3.5% today following a 2.6% increase the previous night.
- The 24-hour trading volume in Dogecoin is $1.48 Billion, indicating a 57% loss.
Dogecoin price has seen a bullish recovery this month, increasing its market cap by 12.2% to reach $24.5 billion. The price of DOGE has now surpassed a key psychological level of $0.16 and is challenging a bearish confluence. The daily chart reveals a rising wedge pattern, characterized by two converging ascending trendlines. This pattern is typically indicative of a potential bearish reversal. Will the meme coin surpass $0.20 this month, or will it crack under the support trendline?
Also Read: BDAG Dashboard Boosts Presale; Dogecoin Whales & Shiba Inu Price
Dogecoin’s Wedge Pattern Signals Caution Amid Shifting Market Dynamics
Currently, Dogecoin is in a positive phase within the rising wedge pattern, displaying increased momentum that is testing the upper resistance trendline at $0.173. Despite the bullish indicators, the overall sentiment surrounding the rising wedge pattern remains bearish.
The intraday trading shows higher price rejection, suggesting an increase in overhead supply, which aligns with the bearish outlook of the pattern and hints at a possible price drop. Moreover, the Verified Author on CryptoQuant, Joao Wedson has pointed out a notable shift in the memecoin market dynamics, with Dogecoin’s trade volume dominance falling to just 3.15%.
$Doge is fading in comparison to the leading Memecoins in the market. Its dominance in trade volume is only 3.15%, while $Floki dominates with over 40% of all Memecoin trades.@DominandoCripto pic.twitter.com/evMjQKvqyL
— Joao Wedson (@joao_wedson) May 24, 2024
Meanwhile, Floki has emerged as a dominant player, capturing over 40% of all memecoin trades, reflecting a shift in investor preferences within this volatile segment.
A breakdown of the support trendline could negate any potential rallies and might lead the price to test the $0.14 level, potentially putting downward pressure on the Dogecoin price, and pushing it toward the $0.10 mark as supply pressure increases.
Technical Indicator
- Exponential Moving Average: The recently reclaimed 20-and-50-day EMA can offer suitable support for buyers to maintain a bullish recovery.
- Relative Strength Index: A steady rise in the daily RSI slope above to 60% mark indicates the current momentum shows a reversal sign yet.
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