The Dogecoin (DOGE) price faces the risk of breaking down from a long-term ascending support line, with technical analysis suggesting a potential bounce before a sharp fall, according to this article.
The Dogecoin (DOGE) price is at danger of breaking down from a longstanding ascending support line in place for almost a year.
If a breakdown transpires, a sharp fall could follow. Nonetheless, short-term time frame readings suggest that the price will 1st initiate a bounce.
Dogecoin (DOGE) Price Returns to Long-Term Support
The technical analysis from the daily time frame shows that the Dogecoin (DOGE) price has returned to an ascending support line that has been in place since June 2022. The line holds tremendous significance since it has been in place for such a long period of time.
The decrease to the support line began on April 4, when the price was rejected by the $0.096 resistance area (red icon), creating a long upper wick. The wick is considered a sign of selling pressure since buyers could not sustain the increase.