Can Dogecoin (DOGE) Price Break Its Bearish Trend? 3 Things to Keep an Eye On


19 Sep 2023 3:06 PM

The Dogecoin (DOGE) price is at risk of breaking down from the $0.059 horizontal support area. This could trigger a massive drop....

  • The DOGE price is facing the possibility of a breakdown from a descending triangle pattern, which could result in a 50% decrease in price.
  • The weekly technical analysis shows that DOGE has remained slightly above the $0.059 support level since June 2022, with recent confirmations suggesting increased buying activity.
  • However, DOGE has been under pressure due to a descending resistance trendline, forming a bearish descending triangle pattern.
  • If there is a breakdown that covers the entire height of the pattern, it could push DOGE's price down to $0.030, a drop of roughly 50%.
  • The weekly Relative Strength Index (RSI) is currently below the 50 mark and declining, indicating a bearish trend.
  • On the daily timeframe, there is a possibility of a bullish trend reversal with a double bottom pattern and bullish divergence in the daily RSI.
  • However, the DOGE price has yet to initiate its increase and bounce from the $0.059 support area.
  • A close below the minor $0.061 area would invalidate the double bottom pattern and likely cause a long-term breakdown.

The sentiment in the article is mixed. The weekly timeframe suggests a bearish trend with the possibility of a breakdown, while the daily timeframe allows for the possibility of a bullish trend reversal.

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You May Ask

What pattern is DOGE currently facing?What is the potential decrease in price if there is a breakdown?What are the key support and resistance levels for DOGE?What is the current sentiment indicated by the RSI?What is the significance of the double bottom pattern in the daily timeframe?

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