Ethereum
Dogecoin faces rejection, warns of bear cycle to $0.10
Dogecoin’s chances of a breakout and trend reversal are at risk as bears dominate the descending wedge. Will this bearish turn of events send DOGE down to $0.10?
With a major rejection of Bitcoin from the $70,000 mark, the overall market sentiment is at risk. Amidst the growing supply, meme coins are at a crossroads, with prominent names like Dogecoin And Shiba Inu stay under long term models.
Dogecoin is retracing its steps from a crucial resistance, warning of an intense correction if the market slides. So, will the Dogecoin token price fall below the psychological $0.10 mark, or is DOGE ready for a lightning strike to $1?
Another Pullback in the Rounding Bottom for Dogecoin
In the Dogecoin Daily chart, bullish attempts at recovery are met with a steady rejection from high prices, leading to a resistance trendline. Holding the meme coin above the psychological $0.10 mark, a descending support trendline generates a falling wedge.
Dogecoin’s recent struggles and an impending correction occur near the upper trendline, which suggests a bearish cycle. Moreover, consecutive bearish candles with long wicks reinforce the possibility of a bearish cycle.
Currently, the meme coin is trading at $0.12885, forming a Doji candle with a minor gain of 0.38%. Thus, the immense supply near the trendline is likely to push the $DOGE price towards the psychological cushion of $0.10.
The bullish crossover of the visible VI lines reinforces the bullish cycle. Meanwhile, the daily RSI line holds above the midpoint. Notably, these positions confirm that the daily momentum indicators support a bullish view.
Shorter time frame reveals weakness of bull cycle
On the 4H chart, the current Dogecoin bull cycle facing opposition at the upper trendline reveals the formation of a triangle pattern. With a long-standing support trendline ahead of the bull cycle, the minor correction completes the pattern.
Currently, buyers are struggling to sustain Dogecoin prices and keep the trendline intact. Moreover, as the $DOGE trend moves closer to the bottleneck, the trend will likely take a clearer direction.
A bullish breakout could propel the altcoin to the R3 pivot point at $0.16 for a 28% surge this week. However, a drop below the trendline will likely continue to $0.10, with minor chances of a reversal at the $0.11919 pivot support.
The Stochastic RSI line shows a bullish cycle ready to start, as the KD lines give a positive crossover in the oversold zone. Therefore, the underlying demand preserves the hope of a bullish recovery.
What are Dogecoin’s breakout targets?
With double-edged price action on two different time frames, Dogecoin is approaching a highly volatile crossroads. Hence, the meme coin is likely to see some sharp moves this week.
According to the Fibonacci levels on the daily chart, the wedge breakout could reach the 50% Fibonacci level at $0.1626. However, a break through the 4H support trendline will result in a bearish trend.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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