Can Dogecoin Reach $0.85? Bullish Setup Hints Potential For Rally
Dogecoin (DOGE) has recently captured attention due to its price’s downward trajectory. While the current decline in DOGE’s price might raise concerns, astute traders are discerning a potential opportunity amidst the turmoil.
As reported by CoinGecko, the DOGE price stands at $0.074288, reflecting a 3.6% drop in the past 24 hours and a 5.2% decline over the past seven days. These figures emphasize the coin’s recent volatility and the challenges that DOGE holders and traders face.
However, beneath the surface of these numbers lies an intriguing pattern that might hold the key to future price action.
Dogecoin Potential For Bullish Continuation
Despite the recent price woes, technical analysis unveils a fascinating pattern on DOGE’s four-hour time frame chart – the bullish flag pattern. This pattern, often observed as a continuation signal, consists of a sharp downward slide resembling a flagpole and a consolidation phase marked by parallel trendlines.
In DOGE’s case, this pattern is at play, suggesting that the ongoing price decline is a precursor to a bullish resurgence.
According to a recent report, the battle between support and resistance levels is evident. DOGE’s price movements within the channel structure reflect this struggle vividly. The support trendline has demonstrated its strength with three discernible bounces, underscoring its importance as a potential rebound point.
DOGE market cap reached $10.25 billion today. Chart: TradingView.com
Conversely, the overhead resistance has twice thwarted upward price movements, showcasing its influence over trader decisions. These dynamics highlight these levels’ pivotal role in determining potential trend shifts.
Historically, flag patterns indicate a temporary pause following a notable price movement, often paving the way for continuing the prior trend. If DOGE’s buyers successfully breach the resistance barrier, an estimated 8% price surge could enable the coin to break through the psychological barrier at $0.085.
Amid the optimism surrounding the flag pattern, caution is unveiled in a separate report. The report’s viewpoint suggests a bearish outlook for DOGE, grounded in the coin’s struggles to overcome the resistance of a falling wedge pattern.
$DOGE has performed its new Weekly Close below the pattern resistance
As a result, #DOGE is potentially set up for a rejection and intra-pattern consolidation
Worst case scenario, DOGE could retrace to the very bottom of the market structure#Crypto #Dogecoin https://t.co/K8KUgizgNw pic.twitter.com/sVbLgHlNzd
— Rekt Capital (@rektcapital) July 31, 2023
DOGE might experience a retracement in a more pessimistic scenario, descending to the wedge’s diagonal support at around $0.055. This divergence in opinions underscores the inherent unpredictability of the cryptocurrency landscape.
While the downward trajectory of DOGE’s price might trigger concern, it also beckons an opportunity for those who analyze its underlying patterns. The emergence of the flag pattern amidst the price decline hints at the potential for a bullish continuation. Yet, analysts’ differing perspectives serve as a reminder of the intricate nature of cryptocurrency markets.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Reddit
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