X Payments Hype Notwithstanding, Dogecoin Price Bearish Setup Spells 43% Drop

NOIDA (CoinChapter.com)— Dogecoin prices refused to break out of their bearish trend despite the token encountering its favorite kind of bullish cue, a Musk-related mention.

A recent post by an X executive brought speculation about crypto payments on the social media platform back into the spotlight.

X is undergoing a transformative evolution into an “everything app” reminiscent of WeChat, per Elon Musk’s vision. Christopher Stanley, X’s Chief Information Security Officer, highlighted the platform’s new financial functionalities in a post.

X recently acquired money-transmitting licenses across 25 U.S. states, paving the way for seamless US dollar and cryptocurrency transactions. Musk has hinted at incorporating cryptocurrencies like Dogecoin, which he has favorably mentioned in the past.

If X integrates Dogecoin, it will likely become a significant medium of exchange on the platform, enhancing its utility and possibly stabilizing its price in the volatile crypto market.

DOGE Price In No Hurry To Invalidate Bearish Setup

Meanwhile, DOGE price continued to move inside a bearish technical setup called the ‘descending triangle.‘

Market analysts predominantly consider the descending triangle a bearish continuation signal. The pattern features a downward-sloping upper trendline and declining resistance levels that progressively lower the price action’s peaks.

Additionally, a horizontal lower trendline acts as support, maintaining a consistent low point that the price struggles to breach. The formation indicates that selling pressure is gradually increasing, overcoming the buying interest, as each rally is weaker than the last.

In a descending triangle setup, the height of the triangle’s thickest section determines the price target. Hence, if the bearish pattern pans out, DOGE price could drop over 43% to reach the pattern’s projected price target near $0.08.

Dogecoin Market Missing Participants

DOGE price continued its downtrend on April 30 as bulls failed to move above the 20-day EMA (red wave) and 50-day EMA (purple wave) dynamic resistance confluence. Moreover, the two EMA trendlines have formed a bearish pattern called the ‘death cross,’ an indicator of bearish market sentiment.

Bulls desperately struggled to hold the Dogecoin price above the 100-day EMA (blue wave) dynamic support despite the bearish pressure. Yet, if the downtrend continues and the trendline support breaks, DOGE price could drop to the support near $0.127.

Moreover, breaching the immediate support might force the Dogecoin price to test the 0.236 FIB support near $0.102 before recovering.

However, if the bulls start a rally, the DOGE price could rally to the resistance near $0.171. Furthermore, breaking and consolidating above the immediate resistance could give the Dogecoin price the boost to challenge the resistance near $0.2.

It is likely that Dogecoin has priced in the X payments news, which means the token would need some other bullish cues to start rallying in an otherwise bearish market.

The relative strength index, or RSI, for DOGE, remained neutral, with a score of 396.11. However, the RSI trendline forming lower highs since March highlights the lack of bullish momentum in DOGE prices, which could mean more bearish cues for the token.

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