Dogecoin Frenzy As Its Price Aims For a Breakout at $0.12
The Dogecoin price experienced a 0.3% decline to $0.102 during Sunday’s trading session, indicating an underperformance compared to the broader market. The presence of short-body candles with long wicks suggests a lack of clear direction from buyers or sellers, leading to ongoing uncertainty. Furthermore, Bitcoin’s struggles to maintain a position above the $60000 floor signal a potential continuation of the downtrend, which could impact Dogecoin’s price stability around the $0.1 mark.
DOGE Wedge Patterns
Recent Dogecoin price predictions indicate a sideways trend around the $0.1 psychological level over the past two weeks, with hints of a potential shift in the prevailing bearish momentum due to a price rebound from the support trendline of a falling wedge pattern.
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This specific chart pattern features two converging trendlines—dynamic resistance and support—signaling a steady downtrend. However, the pattern’s formation often indicates a weakening of bearish momentum, typically culminating in a decisive breakout from the upper resistance.
Possible Breakout
A possible breakout from the wedge range is expected to amplify buying pressure, paving the way for a rally towards a $0.144 resistance, followed by a peak at $0.22. Data from Coinglass indicates that the DOGE Open Interest (OI)-Weighted Funding Rate currently sits at 0.00112, reflecting a positive rate that favours long positions. This suggests a bullish sentiment in the market, with traders willing to pay a premium to maintain their positions. If this trend persists, it could bolster investors’ confidence, thereby potentially driving the Dogecoin price higher.
Final Thought
Conversely, the 20-day Exponential Moving Average and the $0.106 resistance serve as significant barriers against the buyers’ intentions. Furthermore, the coin’s price trading below the daily EMAs (20, 50, 100, and 200) indicates the path of least resistance is downwards. Should the Dogecoin price retreat from these overhead resistances, the anticipated bullish breakout may be delayed, potentially leading sellers to drive an extended correction towards $0.08.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
