Dogecoin's price has seen a recovery surge this month. It increased its market value by 12.2%, reaching $24.5 billion. DOGE's price has currently surpassed the significant psychological level of $0.16, challenging the downward trend.
The daily chart reveals an ascending wedge pattern characterized by two converging upward trend lines. This pattern typically indicates a potential bearish reversal. Will the meme coin exceed $0.20 this month, or will it remain below the support trend line?
What Will Dogecoin's Wedge Pattern Present?
Dogecoin's price is in a positive phase within an ascending wedge pattern, showing increasing momentum that tests the upper resistance trend line at $0.173. The overall sentiment surrounding the ascending wedge pattern remains bearish.
Intraday trading indicates higher price rejection, signaling an increase in overhead supply. This aligns with the bearish outlook of the pattern and suggests a potential price decline.
Joao Wedson, a writer at CryptoQuant, noted a significant shift in meme coin market dynamics, with Dogecoin's trading volume dominance falling to just 3.15%. Meanwhile, Floki accounted for more than 40% of all meme coin transactions, reflecting a shift in investor preferences within this volatile segment.
A break below the support trend line could negate any potential rallies, causing the price to test the $0.14 level. This could potentially exert downward pressure on Dogecoin's price, pushing it towards the $0.10 mark as supply pressure increases.
