New Bullish Pattern Sets Dogecoin Price for 15% Upswing; But There’s a Catch

The ongoing recovery rally in Dogecoin price hit a minor roadblock at the $0.079 level as the market sentiment struggle in FUD. For nearly two weeks, the DOGE price traded sideways below the $0.079 resistance indicating the buyers are westing to take trend control. However, in the 4-hour time frame chart, this consolidation reveals the formation of a famous bullish pattern called ascending triangle.

Key Points

• A potential breakout from $0.079 will bolster DOGE price for a $15% rally
• A cluster of EMAs near $0.079 creates a strong supply zone.
• The 24-hour trading volume in the Dogecoin coin is $257.2 Billion, indicating a 10% loss.

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An ascending triangle pattern is characterized when an asset price is obtaining dynamic support from a rising trendline which leads to a breakout from a crucial horizontal resistance(neckline). In theory, the higher low formation from price using the trendline indicates gradual growth in the bullish momentum.

By press time, the Dogecoin price traded at the $0.079 mark with an intraday gain of 0.5%. However, under the influence of this pattern, the coin price is likely to rise 5.8% to challenge the $0.079 neckline. 

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A potential bullish breakout from $0.079 will intensify the buying pressure and drive the DOGE price another 10% to hit the $0.09 psychological barrier.

On a contrary note, if the market sentiment gets worse, the breakdown below the support trendline will invalidate the bullish thesis.

Technical indicators

Relative Strength Index: This RSI indicator reflects the strength of an asset’s price action over a specified period. Contrary to the rising DOGE price, the 4-hour RSI slope dropping lower indicate weakness in underlying bullish momentum. Thus, the indicator indicates a significant possibility for prices to breach the lower trendline.

Therefore, interested traders should for a breakout of $0.079 barriers before entering a long position.

Exponential Moving Average: the daily EMAs(50, 100, and 200) moving near the $0.074 level indicates multiple hurdles for buyers on the upsides.

Dogecoin Price Intraday Levels

• Spot rate: $0.074
• Trend: Bullish
• Volatility: Medium
• Resistance levels- $0.079 and $0.083
• Support levels- $0.068 and $0.063

The post New Bullish Pattern Sets Dogecoin Price for 15% Upswing; But There’s a Catch appeared first on CoinGape.