The DOGE price has displayed a falling channel pattern on the daily time frame chart for the past seven months. This memecoin has seen significant influence from the pattern, with rebounds from both the upper and lower trend lines. The current market situation provides interested traders the opportunity for long entry opportunities.
The trading zone that stands between the $0.0755 and $0.0692 level restricts market participants. A breakdown below $0.0692 could result in a 20% fall for DOGE. However, the present 24-hour trading volume for the DOGE coin is $156.5 million, indicating a 1.5% gain.
The DOGE price shows a short-term downtrend within the channel pattern. Due to ongoing crypto market volatility, the price takes a sideways turn between the $0.0755 and $0.0692 levels. With the current downtrend, sellers might breach the $0.0692 support and tumble the prices by 20% to reach the combined support of $0.056 and the lower trendline. A reversal from the support trendline earlier this year inspired the significant upswing seen during January and March.
Buyers accumulating at the channel bottom could potentially trigger a new bull cycle, driving the price back up to $0.095-$0.09. The falling channel pattern has the capability to offer a huge rally if the resistance trendline is broken, which could substantially increase the buying pressure for DOGE and drive the price above the $0.1 mark. However, as the DOGE price currently trades at $0.072, an explosive move above the trendline located at $0.95 is less likely in June unless there is a critical update.
Technical indicators, such as the Moving Average Convergence Divergence (MACD) and Bollinger Bands, show varying outlooks for DOGE’s price. With the MACD indicator slopes growing, the buying pressure increases in tandem with the consolidation phase, suggesting that a breakout above $0.0755 remains a possibility. On the other hand, the tightening Bollinger Bands may soon result in a significant breakdown from the current price range formation, which might determine the forthcoming trend.
In conclusion, DOGE’s price is at a pivotal point that could either propel it into a bull cycle or further push the value down, depending on market movements and technical indicators. As such, it is essential for market participants to keep a close eye on trends and updates to make informed decisions.
Source: Coingape
