Dogecoin (DOGE) price rose above $0.06, but what next?
Dogecoin failed to develop growth
The daily timeframe shows that on September 27, the Dogecoin price broke through the downward trend line. Before the breakout, this line lasted 64 days on the chart.
Despite the breakout, DOGE failed to develop a significant upward movement. The price peaked at $0.064 and then fell
On October 2, the DOGE rate formed a bearish engulfing candle (red icon), which completely neutralizes all the growth of the previous candle. The closing price of such a candle is lower than the opening price of the previous candle on a given timeframe. Currently, the meme coin rate is just above the horizontal area of $0.060
The weekly relative strength index (RSI) is giving bearish signals. This momentum indicator has bounced off the 50 mark (red circle) and is declining, a sign of a downtrend.
However, it is important to note that the rising support line on the RSI still remains intact. This line preceded the entire upward movement that began on August 17th.
DOGE entered a bearish pattern
Unlike the uncertain daily time frame, the six-hour chart gives bearish signals.
First, DOGE is trading inside a descending triangle. This is a bearish pattern , meaning it most often leads to a decrease in price. The October 2 rebound (red icon) determines the slope of the resistance trendline.
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