The ongoing correction in Dogecoin price resonates between converging trendlines, revealing the formation of a falling wedge pattern. This pattern indicates the market participants actively respond to this chart structure, allowing interested traders to utilize it for entry opportunities.
A falling wedge pattern currently governs the currency correction phase in the Dogecoin price. To initiate a fresh recovery rally, a bullish breakout from the pattern’s resistance trendline is needed. The 24-hour trading volume in the Dogecoin coin is $314.5 million, marking a 52% gain.
Amid the increasing sell-off in the market, the Dogecoin price has experienced a bearish downturn from the weekly support of $0.0777. This breakdown has further increased selling pressure in the market, reflecting a 4.5% drop in the Dogecoin price as it currently trades at $0.0742.
If the supply momentum continues, the Dogecoin price is potentially looking at another 5% fall, meeting the combined support of $0.071 and the pattern’s support trendline. In an ideal scenario, a retest to the lower support trendline helps recuperate the bullish momentum, potentially triggering a price reversal.
Dogecoin’s price is more likely to experience a temporary recovery, possibly surging the cryptocurrency roughly 8% higher to intersect with the overhead trendline. However, for a fresh recovery rally to ensue, buyers would need a decisive breakout above the resistance trendline.
When considering technical indicators, the downsloping Moving Average Convergence Divergence (MACD) and signal below the neutral line project a strong bearish momentum. The flattish Exponential Moving Averages (EMAs) reflect the Dogecoin price witnessing a sideways trend. However, the falling trendline offers dynamic resistance to the current short-term downfall.
Dogecoin’s price intraday levels are as follows:
– Spot rate: $0.0742
– Trend: Bearish
– Volatility: Medium
– Resistance levels: $0.077 and $0.0838
– Support levels: $0.07 and $0.0628
These levels indicate that the cryptomarket faces both bullish and bearish influences, leading to uncertainty for investors. With the volatility of the market, it is essential for investors to conduct extensive research before investing in cryptocurrencies, as the content presented may include the personal opinion of the author and is subject to market conditions. Neither the author nor the publication holds responsibility for personal financial loss resulting from investment decisions.
Source: Coingape
