The Potential Decline of DOGE Price
The price of DOGE is on the verge of experiencing a decline, confirmed by a breakdown from a long-term descending triangle pattern. This breakdown could lead to a significant 50% reduction in price.
However, there are positive signals on the daily timeframe that suggest a possible turnaround in the prevailing bearish trend.
Will Dogecoin Break Down From Long-Term Pattern?
On the weekly timeframe, the price of Dogecoin has consistently stayed slightly above the $0.059 support level since June 2022. This support level has been verified multiple times.
Despite these positive signals, DOGE has encountered pressure due to a descending resistance trendline active since November 2022. This forms a descending triangle pattern, typically seen as bearish.
A potential breakdown from this pattern could drive DOGE’s price down by roughly 50%, while returning to the resistance line would signify a 16% increase.
The Bearish Trend Indicated by RSI
The weekly Relative Strength Index (RSI), which gauges momentum, supports the possibility of a breakdown. The RSI is below the 50 threshold and decreasing, indicating a bearish trend.
In recent news, FTX is preparing to liquidate various crypto assets but has no intentions of liquidating its Dogecoin assets.
DOGE Price Prediction: Can Bullish Pattern Spark Reversal?
On the daily timeframe, there are signs of a potential bullish trend reversal. A double bottom pattern combined with bullish divergence in the RSI suggests this possibility.
If the Dogecoin price breaks out from a short-term descending resistance line, it will confirm the validity of the double bottom pattern and likely cause a 16% increase.
However, a breakdown from the minor support at $0.061 would invalidate the pattern and potentially initiate a long-term 50% drop.
Hot Take: The Fate of DOGE Price
The DOGE price prediction hinges on whether it breaks below $0.059-$0.061 or breaks out from the short-term resistance line. A breakdown could lead to a 50% drop, while a breakout may result in a 16% increase.
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