This Dogecoin Price has weakened recently after an extremely bearish August that sent the cryptocurrency market into a tailspin. As such, many cryptocurrencies in the market have begun to move toward support in anticipation of a possible recovery. Dogecoin is no different, but unlike many others, a move toward support signals quick return to normal DOGE prices from which one could see it twice.
Dogecoin and the Falling Wedge Pattern
As the price fell, Dogecoin price formed a descending wedge pattern as scratched by crypto analyst Simon on TradingView. Now that the meme coin continues to follow this falling wedge pattern, it has a number of implications for the price. One of them is a possible price breakout depending on how well it is able to hold its price.
Hence, the first major support zone is at $0.096, making it a level to hold if the bull market is to continue. Furthermore, at this level, the crypto analyst indicates that Dogecoin price has a chance to breakout its descending resistance line. A successful breakout from this point could trigger a 50% rally, placing its next resistance at $0.151.
If completed, this move will be crucial for DOGE price as it will be the start of a significant rally. Since the next major resistance is at $0.151, it means that this is a level that needs to be broken to continue the rally. “A break above $0.151 could pave the way for progress towards the next resistance zones, potentially pushing the price even higher,” the crypto analyst explains.
If the breakout is successful, then the crypto analyst estimates that Dogecoin will trade at $0.19. This 100% move, while bullish, will inadvertently put it in the path of the next major resistance just above $0.19, which could prove much more arduous to break.
The Gloomy Side of Failure
As with any analysis, the analyst admits that there is a situation where Dogecoin price could crash. This could happen if Dogecoin Price is unable to sustain itself above $0.096. Such a breakout of an crucial support level could trigger a further decline.
The crypto analyst adds that momentum needs to continue to maintain the bullish sentiment. “Caution is needed. If momentum weakens at this support, we could see a pullback to the lower support area around $0.080-$0.087,” the analyst adds.
In conclusion, the cryptocurrency analyst advises investors to stay alert keep a close eye on the DOGE price hence. “A daily close below this demand area could invalidate the bullish scenario and trigger further declines,” Simon warned.
Featured image created with Dall.E, chart from Tradingview.com
