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    Dogecoin price nears breaking point as price action tightens within a bearish pattern

    Dogecoin Price Analysis: DOGE Teeters on Key Support Amid Bearish Triangle Setup

    Dogecoin (DOGE) is at a critical crossroads as price action compresses within a descending triangle formation, raising the likelihood of a significant move. The memecoin has shed 5.64% recently and now trades just above a crucial support zone that could determine its next major direction.


    ⚠️ Descending Triangle Pattern Signals Caution

    On the daily chart, Dogecoin has formed a descending triangle, a pattern often viewed as a bearish continuation signal, especially when it develops within a prevailing downtrend. DOGE continues to trade well below its 200-day simple moving average (SMA) near $0.248, reinforcing the broader bearish sentiment.

    The horizontal support between $0.165 and $0.17 has held up multiple times in recent weeks. However, with the price once again testing this level and printing small-bodied candles just above it, Dogecoin appears to be approaching a make-or-break moment.


    🔻 Potential Breakdown Toward $0.145?

    Should the $0.165 support level fail, it would likely confirm a breakdown from the descending triangle, potentially triggering a fresh wave of selling pressure. If DOGE closes below this level on the daily timeframe, the next major support lies near $0.145, a level rooted in a previously established demand zone.

    This scenario could usher in a deeper correction, especially if bearish momentum strengthens.


    🧭 Can the Support Zone Hold?

    There remains a chance for a short-term bounce if the $0.165–$0.17 zone continues to hold. However, the overall trend remains bearish unless the triangle pattern is invalidated. A daily close above the descending trendline would be needed to suggest any meaningful reversal.


    📉 Indicators Lean Bearish

    Technical indicators currently favor the bears:

    • 20-day EMA and 200-day SMA are both trending downward, with DOGE trading well below them.
    • RSI sits near 36, approaching oversold territory but still lacking bullish divergence.
    • MACD remains in negative territory, with no bullish crossover in sight and the signal line still above the MACD line.

    These indicators collectively support the thesis of continued downside risk unless momentum shifts significantly.


    🐕 Final Thoughts

    Dogecoin is walking a tightrope. A breakdown from its descending triangle could trigger a slide toward $0.145, while holding the current support could keep price action range-bound for now. Traders should watch for a decisive daily close either above the descending trendline or below the $0.165 support to gauge the next major move.


    Stay tuned for more in-depth crypto technical analysis. Follow us for real-time updates and expert insights into the digital asset markets.

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