After early July, the market viewed the pullback as a temporary correction aimed at resuming bullish momentum. However, as one of the fastest-growing currencies in the market, the selling momentum of memecoins has surged as the broader market has corrected. In the past 24 hours, the prices of major assets such as Dogecoin (DOGE), Shiba Inu (SHIB), Pepecoin (PEPE), and BONK have fallen by 5-6%.
Is this pullback worth selling, or is holding on and waiting for a rebound a better option?
Dogecoin price performance
The Dogecoin price rebounded sharply from the $0.915 support level amid the market recovery in July. The recovery again took the asset up 57% to challenge the upper boundary of the channel wedge pattern at $0.143.
Overhead resistance from the recent market sell-off has caused DOGE to retreat 13% to trade at $0.124. Meanwhile, the market cap of the cryptocurrency world’s largest meme coin has fallen to $18.14 billion.
In theory, it is known that the falling wedge pattern promotes a steady downtrend between two converging trading pairs before buyers gather enough momentum to break out to the upside. The recent reversal from the upper boundary suggests that the corrective trend will continue and sellers may dominate for a while.
MACD: MACD (blue) and signal (orange) are leaning towards a bearish crossover, underscoring the reawakening bullish momentum. If successful, sellers are likely to take control and push the memecoin lower.
EMA: DOGE price breaking below 200D EMA highlights the bearish sentiment among market participants.
Will DOGE price break through $0.25?
A bearish reversal from the wedge pattern could push DOGE price above 20% as the sell-off continues. This would retest the $0.1 psychological level and support timeline.
However, as mentioned above, a falling wedge pattern usually indicates a maturing downtrend. As the broader market remains bullish, DOGE buyers may fight back at $0.1 and aim to break above the upper limit.
A bullish breakout of the wedge pattern will signal an early sign of a trend reversal and support a rally that targets the $0.228 peak.
