Dogecoin’s price, which is around $0.10 right now, is about to make a major move because it’s still unsure. The price of the coin is moving within a falling wedge pattern, which usually means that the bearish trend is weakening and a bullish reversal is about to happen.
The price of Dogecoin fell by 0.3% to $0.102 on Sunday, falling behind market gains. Traders aren’t sure what to do because there are short-body candles with long tails. There isn’t a clear direction from buyers or sellers.
Bitcoin’s inability to keep support above $60,000 adds to this doubt and makes people worry that the downtrend might continue. For the past two weeks, Dogecoin has been trading sideways around the important $0.10 level.
Dogecoin Breakout Potential Analyzed
This could mean that the current downward trend will change. The falling wedge pattern, which is made up of dynamic resistance and support trendlines that come together, usually comes before a rise that could send the price up.
A positive crossover between the MACD (orange) and signal (blue) line accentuates the recuperating bullish momentum. These slope crossing above the midline will further strengthen the buyers grip over this asset. If the pattern holds true, the Dogecoin price could drive a 12% rally to challenge the resistance trendline of the wedge pattern.
If Dogecoin breaks out of this wedge, there could be more buying pressure, which could push the price up to $0.144, which is a support level, with a possible high point at $0.22.
The Open Interest (OI)-Weighted Funding Rate for Dogecoin is currently at 0.00112, which supports this bullish view. This rate shows that long positions are the most common type of position. Traders are willing to pay more to keep their strong bets, which shows that the market is feeling good.
But there are some things that stand in the way of moving forward. The 20-day Exponential Moving Average (EMA) and the support level at $0.106 are still major problems. Dogecoin is selling below its daily EMAs (20, 50, 100, and 200), which suggests that the most straightforward way to go might still be down. If Dogecoin can’t break through these barriers, the expected positive breakout might not happen as planned, which could mean a longer drop to $0.08.
