- The current state of the crypto market is marked by indecisiveness, and Dogecoin’s price is no exception.
- Traders are closely observing the presence of two rising trendlines and a potential bearish continuation pattern.
- Dogecoin’s price is poised for a potential breakout opportunity, but the market sentiment remains uncertain.
As of the current market situation, the crypto market remains in a state of indecisiveness, and the price of Dogecoin is no exception. Traders are closely observing the presence of two rising trendlines and a potential bearish continuation pattern known as the inverted flag.
Over the past five days, Dogecoin’s price has consistently reacted to the mentioned trendlines, signifying traders’ adherence to this crucial chart setup. The daily chart of Doge reveals a long-wick rejection candle at the overhead trendline. This indicates that sellers are resolutely defending the bearish pattern. Dogecoin price previously surged, and traders are expecting the same.
Moreover, if the lower support trendline is broken, it could potentially lead to a drop in the DOGE price. Nevertheless, despite these developments, the 24-hour trading volume for Dogecoin stands at an impressive $709.5 Million, reflecting a 9.98% gain.
On July 21, Dogecoin experienced an intraday gain of 8%, attempting to breach the overhead trendline of the inverted pennant. However, significant selling pressure at this level caused the coin price to retreat. It is currently trading at US$0.07034.
If the daily candle closes near the current level, the DOGE price may experience further downside due to strong overhead supply. This could result in a 4-5% dip to retest the lower trendline. Nevertheless, as long as both trendlines remain intact, the Dogecoin price could extend its current recovery rally.
A bullish recovery would be confirmed if Dogecoin successfully breaches the upper trendline. Overall, the converging trendline of the pennant pattern indicates that Dogecoin is poised for a potential breakout opportunity. However, the inverted flag pattern typically suggests a downtrend continuation, but there is a likelihood that DOGE will break the lower trendline.
Turning to its technical indicators, the 200-day Exponential Moving Average (EMA) of Dogecoin is currently acting as significant resistance. It emphasizes the overall bearish trend for the cryptocurrency. Additionally, the Relative Strength Index (RSI) shows a significant growth in the slope for the same price high near $0.075. This indicates that the buyer’s attempts to push the price higher are currently facing resistance.
Traders are closely watching these technical indicators and price movements to determine the cryptocurrency’s next direction. The intraday gain of 8% on July 21 indicates there is still potential for a bullish recovery. As such, it’s essential for investors and traders to stay informed and closely monitor the market for any further developments.