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

BeInCrypto
BeInCrypto

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.

Go to publisher site

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?

Suggested Reads