In the midst of a choppy market, the Dogecoin price has remained stagnant for over a week. This indecision is evident in the daily chart’s multiple short-body candles, which suggest uncertainty among traders and no forthcoming rally. Nevertheless, the presence of a falling wedge pattern may imply a continued correction phase and pose a challenge to the DOGE price.
As the Dogecoin price approaches the resistance trendline for the wedge pattern, a reversal could increase selling pressure on the popular memecoin. This seller resistance is confirmed by a daily candle exhibiting a long-wick rejection at the trendline, which strengthens the likelihood of a bearish reversal and resumption of a prevailing correction phase. An 8% decline in prices is possible, touching base at the combined support level of $0.068 and the lower trendline of the wedge pattern.
On the other hand, the falling wedge pattern generally signifies a considerable uptrend. For the Dogecoin price to ignite a bullish recovery, it must break through the overhead trendline, which may be facilitated by the daily Relative Strength Index (RSI). The slight uptick in the RSI indicates that buying pressure at lower levels is increasing, thus enhancing the potential for a breakout above the wedge pattern resistance.
However, the Dogecoin price trading under the daily Exponential Moving Averages (EMAs) of 20, 50, 100, and 200-day indicates that traders might encounter minimal resistance when pursuing a short position. Curiously, the 24-hour trading volume in Dogecoin soared by 36% to reach $328.5 million, which is a positive sign for the coin.
By press time, Dogecoin had gained 1.02% intraday, trading at $0.0735. The cryptocurrency’s immediate resistance levels are at $0.0748 and $0.0812, while support levels are at $0.067 and $0.063. Overall, the prevalent trend is bullish, with high market volatility.
It is crucial to remember that market conditions are constantly changing, and personal opinions do not equate to concrete investment advice. Always conduct thorough research and exercise caution before investing in any cryptocurrency, as fluctuations in the market can result in financial losses.
Source: Coingape
