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DOGE Technical Analysis: Falling Channel Soon Drive Prices Under $1


cryptoknowmics.com 27 May 2022 23:48, UTC
Reading time: ~2 m

DOGE price shows a bullish breakout attempt of the falling wedge but faces higher price rejection which may shortly drive the prices to $0.065. Key technical points:

  • DOGE market value declined by 4.34% in the last 24 hours.
  • Sellers prepare to break the $1 mark.
  • The 24-hour trading volume of Dogecoin is $1.26 Billion, indicating a rise of 103%.

Past Performance of DOGE

DOGE prices fell 50% within the last 30 days resulting in the $0.10 breakout after facing rejection near the $0.15 mark. However, the downfall found support near the $0.065 resulting in a lower price rejection candle resurfacing the market value above $0.075. Nonetheless, the falling trend continues and warns of fallout to retest the bottom of $0.065. TradingView Chart Source-Tradingview

DOGE Technical Analysis 

A falling trend shows a contraction in price range leading to the falling wedge pattern. The recent attempt to break above the bearish pattern faces a sharp rejection leading to a higher price rejection candle. This lowers the possibility of a bullish breakout and warns against a fallout rally that may reach $0.065. Siding with buyers, the MACD as well as the VI indicators suggest the possibility of an upside breakout of the falling wedge. This is because of the bullish crossover of VI lines and the current upward trend in the MACD and signals lines. However, it is evident that the Stochastic RSI indicator displays the K and D lines dropping below the overbought area following the bearish crossover, marking a selling spot. Therefore, the indicator doubts the possibility of a bullish candle closing above the descending trendline. In a nutshell, the DOGE technical analysis projects a bullish attempt that might lead to a downtrend upon failure.

Upcoming Trend

If DOGE buyers manage to pull off a daily candle closing above the resistance trendline, traders can expect the breakout rally to reach the $0.085 mark. However, if the selling pressure grows overnight and breaks below the support trendline, a downfall to $0.065 seems inevitable. Resistance Levels: $0.085 and $0.093 Support Levels: $0.065 and $0.050  

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