Creating lower highs in the weekly chart, resulting in a 60% drop in DOGE price since November 2022. Supporting the bearish clan, the 50-week EMA keeps the bullish comebacks in check to lower the DOGE price in a downtrend.
However, the buyers create a fortress at the $0.060 level, holding down the downtrend and struggling to avoid a lower low formation. Will this revolt lead to a stronger comeback for DOGE, or will it plunge to $0.050?
Moving sideways for the last three weeks, leading to multiple Doji candles in the 1-week chart, the DOGE price. Moreover, the Dogecoin price action displays a long tail reversal in the falling wedge pattern, teasing an upcycle in order.
Let’s delve deep into the sideways trend of Dogecoin price action.
Buyers Prepare A DOGE Price Breakout
Following a sharp $0.064 breakout rally, the DOGE price fails to surpass the 200 EMA in the 4-H chart. Leading to a double top reversal to plunge back below $0.64, Dogecoin price reattempts a bullish breakout.
Trading at $0.0639, the Dogecoin price action finds a cushion at the 50 EMA in the 4-H chart with multiple long tail candles.
Moreover, the MACD and RSI indicators remain positive to support the breakout thesis. The bullish crossover in the MACD indicator and the RSI line sustaining above the halfway line project an improvement.
Therefore, the $0.064 breakout can potentially strap the DOGE price back on a recovery trajectory and reach the $0.070 mark. Accounting for a 9% jump, it will catalyze the upcycle within the bearish wedge, projecting further recovery.
On the flip side, a freefall in DOGE price to $0.060 will threaten the downtrend continuation with a breakdown. In such a case, the Dogecoin price will plume to the next psychological support of $0.050.
Credit: Source link