Can the price of Dogecoin overcome the bearish trend? Here's what you need to know
The DOGE price is potentially on the verge of a decline. This will be confirmed by the breakdown of the descending triangle pattern that has been developing for a long time. This breakdown could lead to a significant price decline of 50%.
Will Dogecoin break from the long-term model?
Dogecoin's price analysis shows that since June 2022, the price has consistently remained slightly above the $0.059 support level. This support level has been tested several times, which emphasizes its significance.
However, despite these positive signals, DOGE is facing pressure due to a descending resistance trendline that has been active since November 2022. Combined with the $0.059 support, it forms a descending triangle, which is usually interpreted as a bearish pattern.
DOGE has marked several lower highs over this period, implying a decline in its upward momentum. The DOGE price is almost back to the $0.059 level, wiping out the gains from the recent recovery.
A potential breakout covering the entire height of this pattern (white) could potentially take the DOGE price down to $0.030, a decline of about 50%.
Confirmation of this breakout would require DOGE to close below the horizontal support level at $0.059. Conversely, a return to the descending resistance line would represent a 16% rise.
DOGE price forecast: can a bullish pattern trigger a reversal?
Dogecoin price analysis provides signs of a potential bullish trend reversal. This is due to the formation of a double bottom, which is considered a bullish pattern.
In addition, this pattern is combined with a bullish RSI divergence. A bullish divergence occurs when an increase in momentum is accompanied by a decrease in price. This often leads to a bullish trend reversal.
If Dogecoin price breaks the short-term descending resistance line, it will confirm the validity of the double bottom pattern. This would likely lead to a 16% long-term upside above the downside resistance line.On the other hand, a break of minor support at $0.061 would indicate that the pattern is invalid. This would likely cause a long-term failure and lead to a 50% drop.