Dogecoin (DOGE) Forms Bearish Descending Triangle Pattern, Crypto Daily Trade Signals Issues Warning
- 王林Original
- 2024-06-20 06:06:30947browse
Popular cryptocurrency analyst and trader, Crypto Daily Trade Signals, has issued a warning to the Dogecoin community about a potential downside risk for the popular meme
Popular cryptocurrency analyst and trader, Crypto Daily Trade Signals, has warned the Dogecoin community of a potential downside risk for the popular meme-inspired crypto asset as it faces a bearish technical pattern and broader negative sentiment in the digital asset market.
Dogecoin Forms Bearish Descending Triangle Pattern
Crypto Daily Trade Signals’ analysis focuses on Dogecoin’s current market structure, highlighting the formation of a Descending Triangle Pattern. The descending triangle is formed by a series of lower highs pushing against a flat support level, which is currently at $0.121, and is typically considered a bearish continuation signal.
The analysis notes that while the triangle’s base at $0.121 provides strong support for DOGE, the prevailing bearish market conditions, driven by Bitcoin, the leading cryptocurrency asset, may make this support level irrelevant. However, the expert adds that after testing the support level three times, investors are hoping for the level to hold this time around.
“DOGE price was previously trending inside a giant descending triangle. The base of the triangle provides robust support for DOGE but prevailing bearish market conditions created by Bitcoin may render it useless. The support has been tested three times before and investors are hoping it will hold water now,”
Crypto Daily Trade Signal also highlights another bearish aspect for the asset price, noting that DOGE is trending below the 50-day and 200-day Simple Moving Average (SMA).
It’s worth noting that descending triangles are typically not bullish, but when they resolve upward, they tend to trigger an explosive rally. In the event of a bounce at this price point, the analysis suggests that DOGE could break out of the current market structure and reach $0.237. However, the crypto asset’s path upward may not be straightforward, as Crypto Daily Trade Signals identifies two key resistance levels at $0.182 and $0.206.
On the other hand, if the crypto asset fails to rebound and drops below the base of the triangle, the analysis anticipates a decline toward the $0.096 price level and potentially further down to the $0.072 level in the upcoming days.
Pessimism Among Investors Grows
This technical analysis comes at a critical juncture for Dogecoin, especially as the meme coin has been struggling to regain momentum. The broader market downturn has amplified the challenges, as investors’ sentiment toward cryptocurrencies’ short-term potential continues to wane.
As DOGE continues to navigate this descending triangle, the next several days will be crucial in determining whether the asset can withstand the bearish pressures or succumb to a steeper decline.
At the time of writing, DOGE is trading in the green, valued at $0.125 with a 2.79% increase over the past day. While its market cap has increased by over 2%, its trading volume has decreased by more than 34% in the past day. The bullish momentum seen today in the meme coin market suggests that DOGE may be poised for further gains in the upcoming days.
News source：https://www.kdj.com/cryptocurrencies-news/articles/dogecoin-doge-forms-bearish-descending-triangle-pattern-crypto-daily-trade-signals-issues-warning.html
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