Dogecoin (DOGE) is showing signs of a potential rally as it moves within a bullish falling wedge pattern. A breakout above this pattern could push prices to $0.14. The asset is at the bottom of a bullish market structure, with a potential to rally 27%.
Market Recovery and Bullish Indicators
Following a recent market downturn, many Dogecoin investors rushed to sell their holdings on exchanges. However, as the market began to recover, exchange inflows have decreased, setting the stage for a potential bullish rally for DOGE.
Dogecoin Price Offers Reprieve
Currently, DOGE is trading within a falling wedge pattern, a bullish reversal signal. Recent candlestick formations show a strong bounce off the lower boundary of the wedge with significant volume, indicating a potential reversal. The price movement within this pattern suggests the end of a corrective wave and the beginning of a new impulsive wave.
Technical Analysis
50-day EMA: $0.122
200-day EMA: $0.126
Both moving averages are above the current price, reinforcing the bearish trend. Immediate support for Dogecoin is at $0.095, near the recent low, while resistance is at $0.1053 (the recent high) and at the 50-day EMA ($0.122).
RSI: 32.50, indicating oversold conditions and suggesting a potential price bounce.
Chaikin Money Flow (CMF): -0.03, indicating mild selling pressure.
Price Predictions
If DOGE rallies and breaks above the falling wedge, it could set new price targets around $0.14, $0.17, and $0.21. The falling wedge pattern, combined with increased volume and an oversold RSI, suggests a potential reversal. Short-term traders may find opportunities to go long, while long-term traders may wait for confirmation of a trend reversal.
On-Chain Metrics Support Short-Term Rally
Data from IntoTheBlock shows a significant reduction in exchange inflows, dropping by 38.85% from $664.48 million to $426.24 million over the last day. This decrease follows a peak in exchange inflows, the highest in the last month, triggered by the recent market crash.
Additionally, Dogecoin open interest has slightly increased by 0.09%, signaling a rise in market activity. Combined with the rising price, this may indicate increasing buying pressure for DOGE.
An anticipated 27% price rise would protect over 451,000 DOGE holders from running losses. According to IntoTheBlock, 451,560 holders bought Dogecoin between $0.10 and $0.14. Recent developments in payment integration on X (formerly Twitter) may also serve as a catalyst to push Dogecoin's price into the breakout zone.
Potential Risks
If market conditions reverse and become overly bearish, Dogecoin exchange inflows may resume, signaling market panic and potentially turning bearish for DOGE’s price.
Overall, while the current trend remains bearish, technical indicators and on-chain metrics suggest a potential short-term rally for Dogecoin. Investors and traders should watch for key resistance levels and market conditions to gauge the likelihood of a sustained upward movement.
Notice:
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