2023-5-17 01:00 |
The Dogecoin (DOGE) price could break down from an ascending support line that has existed for almost a year. If confirmed, this could precede a sharp fall.
The price action from both the weekly and daily time frames suggests the trend is still bearish. So, more downside is likely soon.
Dogecoin Price Uncertainty Reigns SupremeThe technical analysis from the long-term weekly time frame gives conflicting signs for the future Dogecoin price trend. While the price broke out from a long-term descending resistance line (dashed), it failed to move above the $0.115 resistance area.
Rather, the price was rejected (red icon), creating a long upper wick. This is considered a bearish sign since it means that buyers could not sustain the increase.
Rather, sellers took over, pushing the price down as a result.
After the rejection, the meme coin fell to an ascending support line that has been in place since June 2022. This is the fourth time the price has touched the line.
DOGE/USDT Weekly Chart. Source: TradingViewThe weekly Relative Strength Index (RSI) provides a bearish reading. Traders utilize the RSI as a momentum indicator to assess whether a market is overbought or oversold and to determine whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true.
The indicator is below 50 and decreasing (red circle), a sign associated with bearish trends.
DOGE Price Prediction: Breakdown a Matter of Time?The daily time frame readings align with the bearish DOGE price prediction from the weekly time frame.
The price action shows that the DOGE price has traded inside a descending triangle since November 2022. The descending triangle is considered a bearish pattern, meaning it usually leads to breakdowns.
Currently, the price trades very close to the triangle’s base at $0.067. A breakdown that travels the entire triangle’s height would take the price to $0.04, reaching a new yearly low in the process.
DOGE/USDT Daily Chart. Source: TradingViewHowever, a breakout from the triangle’s resistance line would invalidate this bearish long-term DOGE price prediction.
In that case, the most likely outline for the future price movement would be an increase to an average price of $0.105.
For BeInCrypto’s latest crypto market analysis, click here.
The post Dogecoin (DOGE) Price Risks Sell-off but Only if It Loses This Key Support appeared first on BeInCrypto.
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