Dogecoin (DOGE) has faced significant resistance in its recent attempt to break above the upper boundary of its falling wedge pattern. Increased selling pressure has forced DOGE’s price below its 20-day exponential moving average (EMA), indicating that bearish forces currently dominate the market.
With buying pressure waning, Dogecoin may continue to trade within its downward channel for the foreseeable future.
Sellers Stall Dogecoin’s Attempt to Break Out
DOGE’s daily chart reveals that the meme coin has been confined within a falling wedge pattern since March. This pattern is characterized by two descending trend lines: the upper line serves as resistance, while the lower line acts as support.
Although falling wedges are typically seen as bullish patterns, as they often result in a breakout above the upper trendline, DOGE has struggled to maintain any rally above this resistance. The wedge has narrowed in recent months, and DOGE’s inability to sustain momentum above the upper trendline suggests strong selling pressure at this level. The recent dip below the 20-day EMA further underscores the dominance of bearish activity as buying interest declines.
Supporting this bearish outlook, DOGE’s Elder-Ray Index shows a negative reading of -0.0032, signaling that sellers have a firm grip on the market. Additionally, the Relative Strength Index (RSI) for DOGE is currently at 43.74, below the neutral 50 mark, further indicating that selling activity outweighs buying.
These indicators suggest a strong bearish sentiment, making a breakout above the upper trendline of the falling wedge pattern unlikely in the near term.
DOGE Price Forecast: Futures Traders Remain Hopeful
Despite the challenges facing DOGE’s price, futures traders have largely maintained long positions, as evidenced by consistently positive funding rates. These rates indicate that more traders are betting on a price increase rather than a decline, aligning the price of perpetual futures contracts with the spot price.
If DOGE experiences a surge in demand that propels it above its 20-day EMA and beyond the upper trendline of its falling wedge pattern, the price could rise to $0.11. Should the uptrend continue, DOGE may target the $0.13 level.
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