As a seasoned researcher with years of experience in the cryptocurrency market, I have seen my fair share of bull runs and bear markets. The recent downturn in Dogecoin’s price has been no exception, but I find myself intrigued by its current formation – a falling wedge pattern.
In August, a very bearish month, Dogecoin‘s price has noticeably decreased, causing a downward trend in the cryptocurrency market as a whole. Consequently, numerous cryptocurrencies are now working to find a base in preparation for a potential market rebound. Unlike many others, however, Dogecoin’s efforts to establish a support level suggest a swift increase in its value, potentially doubling its current price.
Dogecoin And The Falling Wedge Pattern
As the cost of Dogecoin decreases, it has developed a falling wedge configuration, according to crypto analyst Simon on TradingView. This pattern suggests several potential outcomes for the coin’s price, including a potential price surge if it successfully maintains its value.
Beginning at the current point, the initial significant support area can be found around $0.096. This level is crucial for maintaining any ongoing bullish trend. In addition, the crypto analyst suggests that if Dogecoin manages to breach its downward resistance line at this level, it could lead to a potential 50% surge. If successful, the next potential resistance would be as high as $0.151.
A breach above $0.151 could initiate a significant surge in DOGE‘s value, leading it towards further resistance levels, possibly causing the price to rise even more, as suggested by the cryptocurrency expert.
Completing this breakout might result in a crypto analyst predicting that Dogecoin’s price could reach as high as $0.19. This potential 100% increase, while optimistic, would place it on a trajectory towards encountering another significant resistance level, which is just above $0.19. Overcoming this obstacle might be more challenging than the previous one.
The Downside Of A Breakdown
Similarly to any analysis, the analyst recognizes a scenario in which the Dogecoin price might plummet. This could occur if the Dogecoin price fails to sustain itself above $0.096, leading to a breakdown. Such a drop below a significant support level could potentially lead to further decreases.
The crypto expert also notes that for optimism to persist, the positive trend should continue. It’s important to remain vigilant, as if momentum starts to falter at this level of support, we might witness a dip towards the lower support range around $0.080-$0.087.
In summary, the crypto expert advises investors to closely monitor the Dogecoin (DOGE) price going forward. He cautions that if the closing price for the day drops below the current demand zone, it may challenge the bullish outlook, potentially leading to additional decreases.
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2024-09-02 09:11