DOGE Price at Risk of Breaking Down from Long-Term Pattern
The price of DOGE is currently facing the possibility of breaking down from a long-term descending triangle pattern. This breakdown could potentially result in a 50% decrease in price. While the weekly timeframe indicates bearish readings, there is hope for a bullish trend reversal on the daily timeframe.
Will DOGE Break Down From Long-Term Bearish Pattern?
According to the weekly technical analysis, DOGE has been hovering just above the $0.059 support level since June 2022. This support level has been confirmed multiple times, indicating its significance. However, DOGE has also been constrained by a descending resistance trendline since November 2022, forming a bearish descending triangle pattern. The RSI, which gauges momentum, supports the potential breakdown.
DOGE Price Prediction: Will Double Bottom Save Breakdown?
On the daily timeframe, there is hope for a bullish trend reversal due to the formation of a double-bottom pattern. The first bottom had a long lower wick, and the second one has bullish divergence in the RSI. However, these bullish signs may only lead to a short-term reversal, with the price potentially reaching the long-term resistance line at $0.070 before another downward movement.
Hot Take: DOGE Price at Risk of Significant Decrease
If DOGE closes below the $0.059 support level, there is a high likelihood of a breakdown. This could result in a 50% decrease in price, with the next support level at $0.030. The upcoming FTX liquidation, which holds a significant amount of Dogecoin, could further impact the price.
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