Dogecoin chances of a breakout and trend reversal are under threat as the bears dominate the falling wedge. Will this bearish turn of events drop $DOGE to $0.10?
With a major rejection in Bitcoin from the $70K mark, the broader market sentiment is at risk. Amidst the growing supply, the meme coins are at a crossroads, with the top names like Dogecoin and Shiba Inu remaining under long-term patterns.
Dogecoin retracing the step-backs from a crucial resistance warns of an intense correction if the market slides. So, will the Dogecoin token price drop below the $0.10 psychological mark, or is $DOGE ready for a moonshot to $1?
Another Pullback Within Rounding Bottom for Dogecoin
In the Dogecoin daily log chart, bullish attempts to recover face constant high price rejection, leading to a resistance trendline. Holding the meme coin above the $0.10 psychological mark, a descending support trendline generates a falling wedge.
Dogecoin’s recent struggle and a looming correction arise near the overhead trendline, teasing a bear cycle. Furthermore, the consecutive bearish candles with long wicks bolster the bear cycle possibility.
Currently, the meme coin trades at $0.12885, forming a Doji candle with a minor 0.38% gain. Thus, the immense supply near the trendline is likely to push the $DOGE price to the $0.10 psychological cushion pad.
The bullish crossover in the VI lines visible bolsters the bull cycle. Meanwhile, the daily RSI line holds above the halfway point. Notably, these positions confirm that the daily momentum indicators support a bullish viewpoint.
Smaller Timeframe Reveals the Bull Cycle Weakness
In the 4H chart, the ongoing Dogecoin bull cycle facing opposition at the overhead trendline reveals a triangle pattern formation. With a long-coming support trendline of the bull cycle, the minor correction completes the pattern.
Currently, buyers struggle to sustain Dogecoin prices and keep the trendline intact. Further, as the $DOGE trend approaches the bottleneck portion, the trend will likely get a clearer path.
A bullish breakout could pump the altcoin to the R3 pivot point at $0.16 for a 28% jump this week. However, a downfall under the trendline will likely continue to $0.10, with minor reversal chances at the $0.11919 pivot support.
The stochastic RSI line shows a bull cycle ready to start, as the KD lines give a positive crossover in the oversold zone. Hence, the underlying demand preserves the hope of a bullish revival.
What Are Dogecoin Breakout Targets?
With double-edged price action in two different timeframes, Dogecoin is approaching a highly volatile crossroads. Consequently, the meme coin is likely to witness sharp moves this week.
As per the Fibonacci levels in the daily chart, the wedge breakout could hit the 50% Fibonacci level at $0.1626. However, a fracture in the 4H support trendline will lead to a bearish trend.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
