Dogecoin struggles to break beyond the falling wedge pattern on the daily chart. Will the prevailing downtrend undermine its chances of recovering to $0.27785?

As Bitcoin hangs near the $84,000 mark, Dogecoin witnesses an intraday pullback of 3.55%. Currently, the biggest meme coin, with a market cap of $24.99 billion, is trading at $0.1682.

As Dogecoin struggles for a breakout rally, the 24-hour pullback warns of a new downswing. Will this result in a pullback to the $0.10 psychological mark? Let’s find out.

Dogecoin Struggles To Break Falling Wedge

On the daily chart, Dogecoin’s price action reveals a declining trend gaining momentum. The bearish influence has resulted in a falling wedge pattern, coiling up the trend momentum.

Within this bearish pattern, the short-term recovery in Dogecoin faces resistance at the confluence of the overhead trendline and the 23.60% Fibonacci level at $0.1781. However, following a 4.77% pullback yesterday, Dogecoin failed to break above the high supply area, signaling a bullish failure.

Currently, the bearish pullback suggests the potential for an extension, as Dogecoin experienced a higher price rejection at the 24-hour high of $0.1714. Despite the possibility of a steep correction, the MACD and signal lines maintain a positive alignment.

However, the sudden decline in the intensity of bullish histograms warns of a potential bearish reversal. Meanwhile, the short-term recovery in the RSI continues to hover between the oversold boundary and the halfway line, suggesting that, despite the recovery, the bearish pressure remains stronger, according to the RSI.

Analyst Signals Potential 16% Upswing in DOGE

Despite the growing uncertainty surrounding Dogecoin, crypto analyst Ali Martinez maintains a positive outlook. The analyst points out an ascending triangle pattern on the hourly price chart.

According to Martinez, a bullish breakout above the $0.177 resistance could trigger a rally. Based on this triangle pattern, the analyst anticipates a 16% price move upon breakout.

Dogecoin Price Targets

Based on Fibonacci levels, the short-term pullback in Dogecoin could test the $0.0895 level if the downtrend continues, signaling a potential breakdown below the $0.10 mark.

However, if short-term consolidation near the overhead trendline occurs, a breakout could follow, especially if the broader market stabilizes. A successful breakout could result in a price surge to the 50% Fibonacci level at $0.27785.