The price of Dogecoin (DOGE) attracted attention with nearly a 50% increase in September. However, following a downturn starting on September 29, the cryptocurrency has since lost more than 20%.
Observers, including Kevin (@Kev_Capital_TA), suggest that further declines may be imminent as the price breaks below a crucial support level. Kevin provides a detailed analysis of the current technical landscape for Dogecoin, highlighting several critical patterns and indicators
Dogecoin Price Analysis
Kevin points out that a falling wedge pattern, indicated by yellow lines on the chart, had been forming for several months. Although this pattern is generally considered bullish, the recent breakout attempt from the wedge has failed.
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The rejection at the 200-week SMA is particularly concerning for traders. Kevin notes that this rejection signals a strong bearish sentiment, as sellers have overpowered buyers at this significant resistance point.Bearish Engulfing Candle:
A bearish engulfing candle is taking shape on the chart, a strong indicator of a bearish reversal. This pattern occurs when a larger red candle completely engulfs the previous green candle, suggesting that sellers have gained control.
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Kevin emphasizes that Dogecoin’s return inside the falling wedge after the failed breakout weakens its bullish potential. This re-entry is viewed as a “fakeout” and contributes to a growing bearish sentiment.
On the 4-hour chart, Kevin notes that Dogecoin has also lost the 200 SMA along with the macro falling wedge trendline. This breakdown reinforces a strong bearish momentum in both short and long-term perspectives.
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Show more +Show less – Next Key Levels for DOGE Price
Kevin identifies an immediate price target of $0.085, which represents a potential drop of around 20% from the current price of about $0.105.
Should this support level fail, further potential support could be found in the $0.06 region, based on historical price action and previous consolidation points visible on the chart.
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