Dogecoin Price Analysis: In the weekly time frame chart, the Dogecoin price shows a V-shaped reversal from the combined support of $0.53 and a lower trendline of a symmetrical triangle pattern. This type of upsurge reflects high accumulation from investors mostly attracted towards discounted prices after a significant downturn. As a result, the popular memecoin has surged 45% in the last seven weeks to reach the current trading price of $0.0773. Can buyers resume this bull run higher or its time for a correction phase?
Also Read: Bitcoin Transaction Volume Tanks While Dogecoin’s Hits 16-Week High
Dogecoin Price Daily Chart
A bullish breakout from the combined resistance of $0.0745 an overhead trendline sets the DOGE price for a 20% upswing.
A potential bullish crossover between the 20-and-100-day EMA would bolster the recovery rally.
The 24-hour trading volume in the Dogecoin coin is $739.5 Million, indicating a 24% gain
inverted flag pattern governs the current recovery trend in Dogecoin price. Amid this rally, the coin price resonated between two converging trendlines, whose evident breakout leads to massive price movement.
This bearish continuation pattern usually encourages the breakdown of the lower support trendline to replenish the selling momentum. However, with an intraday gain of 8%, the coin buyers offered an upswing breakout from the flag pattern trendline, invalidating the bearish thesis.
A bullish outcome of a bearish pattern is rare and a strong buy signal indicates the DOGE could witness extended recovery. If the daily candle closes above the breached resistances of $0.0755 and the aforementioned trendline, the coin buyers could drive a 20% rally to $0.094, followed by $0.1047.
Is DOGE Price Still Under Correction Threat?
In case the overhead supply persists and closes the daily candle below the resistance trendline, the bullish thesis will get invalidated. The resulting higher price rejection wick will indicate sellers continue to defend this dynamic resistance. A potential reversal will plunge the price back to a lower trendline of the inverted flag pattern. Until this pattern is intact, the Dogecoin price is at risk of a major correction.
Exponential Moving Average: The Dogecoin price breakout above the 200-day EMA would signal an early sign of a potential uptrend.
Relative strength index: The daily RSI slope above 60% reflects high buying momentum buying among market participants.