Dogecoin (DOGE) Price Tests Major Resistance Levels, But Rising Wedge Pattern Hints at Bearish Reversal
- 王林Original
- 2024-08-09 15:07:11922browse
Dogecoin price rose even higher over the last 24 hours following Bitcoin’s upswing above the $60,000 psychological barrier. The markets are back to green
Dogecoin price rose even higher over the last 24 hours, following Bitcoin’s upswing above the $60,000 psychological barrier. While the markets are back to green, the Bitcoin Fear and Greed Index shows that the majority of the market is still cautious.
This could be because a majority of crypto assets, including DOGE, are forming what seems to be a rising wedge, which is a bearish reversal pattern. Nevertheless, DOGE prices are hopeful in the short term.
Dogecoin Price Tests Major Resistance
DOGE’s price is on a short-term upward trend within a larger downward trend. The price has been making higher lows, but it is still trading below both the 50-day ($0.10133) and 200 exponential moving average (EMA) ($0.11216), which suggests that the broader trend is still bearish.
The DOGE price action is currently testing resistance around the $0.1100–$0.1120 range, which is near the 200 EMA. Above that, a stronger resistance level is around $0.1200, which coincides with the previous price action.
On the downside, there is immediate support at $0.10, which is close to the 50 EMA. A more significant support level is around 0.08, which aligns with a previous low.
The recent Dogecoin price action has formed a rising wedge pattern (marked as ABCD in the chart), which is typically a bearish reversal pattern. This pattern suggests a potential breakdown below the wedge, which could lead to a downward move.
The 50 EMA is trending downward, and the price is struggling to break above the 200 EMA, which reinforces the bearish outlook. The Relative Strength Index (RSI) is at 65.31, which is nearing overbought territory. If the RSI starts to decline, it could indicate a potential reversal.
The Chaikin Money Flow (CMF) is neutral at 0.01, suggesting a balanced flow of money, but it doesn’t show strong buying pressure to support a sustained upward move.
Dogecoin price prediction shows the recent upward movement in price was accompanied by lower volume, which typically indicates weakening momentum. This divergence could suggest that the current upward move might not be sustainable.
Moreover, the recent Dogecoin Core upgrade to version 1.14.8, which aims to improve stability, efficiency, and security, could impact the price positively in the long run.
On-Chain Metrics Show Short-Term Upside
According to data from Coinalyze, an on-chain analytics firm, the open interest for DOGE increased by 7.48% over the last 24 hours. When combined with the rising price, this typically signals a potential continuation of the short-term upward trend.
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