The ongoing correction in Dogecoin price recently experienced a significant halt at the combined support of $0.071 and a lower trendline of the wedge pattern. On the daily chart, the candles display several lower price rejections at this support level, suggesting that sellers struggle to continue on a bearish trajectory. These reversal signs imply that the DOGE price might see a bullish upswing in the upcoming week, potentially kickstarting a bullish recovery.
In the event of a bullish breakout from the wedge pattern, the underlying bullish pressure could accelerate. The 200-day EMA, aligned at the $0.082 level, forms a robust resistance zone that could hinder the price rally. Currently, the 24-hour trading volume in Dogecoin stands at $314.5 million, representing a substantial 52% gain.
As of press time, Dogecoin’s price trades at $0.0725 and continues to oscillate above the wedge pattern support trendline located at the $0.071 local support. Amid lingering uncertainty in the crypto market, this memecoin displays wavering price action as it attempts to find support along this downsloping trendline. If the bullish momentum escalates, the coin price might surge by 3-5%, challenging the overhead trendline. While the wedge pattern governs the ongoing correction phase, it could prolong Dogecoin’s decline until it remains intact.
In theory, however, this pattern is a well-known bullish reversal pattern that often triggers a significant rally upon breaking its resistance trendline. As a result, the Dogecoin price seems poised to break the overhead trendline, signaling a resumption of its upward trend. Such a breakout could potentially propel the price rally to $0.082, $0.092, or even $0.1045.
Technical indicators also suggest potential bullish movement. The 4-hour Relative Strength Index (RSI) slope is rising, hinting at increasing underlying buying pressure in Dogecoin, even though the price action remains sideways. This bullish divergence raises the possibility of an upswing towards the overhead trendline. Meanwhile, the 20-day Exponential Moving Average (EMA) serves as a dynamic resistance against the rising Dogecoin price.
Dogecoin’s price intraday levels are as follows:
– Spot rate: $0.07212
– Trend: Bullish
– Volatility: High
– Resistance levels: $0.0748 and $0.0812
– Support levels: $0.067 and $0.06
It’s crucial to note that the content presented may include the personal opinion of the author and is influenced by market conditions. Be sure to conduct thorough market research before investing in cryptocurrencies. Neither the author nor the publication assumes any responsibility for potential personal financial loss.
Source: Coingape
