Dogecoin Price Prediction: DOGE Forms Falling Wedge Pattern, Breakout Soon?
- WBOYOriginal
- 2024-08-21 03:27:08601browse
Dogecoin (DOGE), the biggest meme coin in crypto, was trading at the important support level of $0.10 on Aug. 20, just above the lowest level this month.
After falling by over 55% from its highest level this year, Dogecoin (CRYPTO: DOGE) price remained in a bear market on Aug. 20.
What Happened: Meme coin giant Dogecoin was trading at the crucial support level of $0.10, just above its lowest level this month.
This performance comes as the meme coin industry undergoes a massive shift. Demand for traditional coins like DOGE and Shiba Inu (CRYPTO: SHIB) has waned as traders pivoted toward new and virally marketed tokens like Dogwifhat (CRYPTO: WIF) and Pepe (CRYPTO: PEPE).
While Dogecoin boasts a market cap of over $14.7 billion, data shows that its 24-hour trading volume stood at $741 million. In comparison, Pepe, valued at $3.2 billion, had a volume of over $1 billion.
Dogecoin's demand also slipped in the futures market, with its open interest of almost $500 million, significantly lower than the year-to-date high of $2.2 billion.
On the brighter side, DOGE's hash rate continued its rally, reaching a record high of 1.2580 PH/s, up from 818 TH/s in January. The mining difficulty also surged to an all-time high of 23.12 Million.
DOGE Price Action: On the weeklyの時間足, Dogecoin has been in a consolidation for over 13 months, with a strong bullish rally that peaked at $0.2274 in March as Bitcoin and other coins surged.
Positively, the accumulation/distribution indicator rose and remained at its highest level since April 2022, despite the coin being down over 50% from its year-to-date high.
Interestingly, DOGE has formed a falling wedge pattern, which occurs when two trendlines converge. Usually, this pattern signals a bullish breakout as the two lines converge, which is about to happen.
Hence, this pattern suggests that the coin may soon see a bullish breakout. If this happens, DOGE could rally to the key resistance point of $0.1587, which was its highest swing in October 2022. This price target would be a gain of around 56% from the Aug. 20 level.
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