The Dogecoin price plunged 0.3% to $0.102 on Sunday trading session, underperforming the broader market uptick. The series of short-body candles with long wicks indicate no clear indication of buyers or sellers. The uncertainty persists as Bitcoin price struggles to sustain above the $60000 floor, indicating a risk of downtrend continuation. Will the DOGE price lose the $0.1 mark?
Dogecoin Price Hints Major Breakout Amid Wedge Formation
Dogecoin price prediction shows a sideways trend in the past two weeks, wavering around the $0.1 psychological level. The consolidation hints at a shift in prevailing bearish momentum as the price rebounded from the support trendline of the falling wedge pattern.
This chart pattern consists of two converging trendlines: dynamic resistance and support to lead a steady downtrend. Typically, the pattern formation indicates a weakening of bearish momentum, which concludes with a decisive breakout from upper resistance.
A positive crossover between the MACD (orange) and signal (blue) line accentuates the recuperating bullish momentum. These slope crossing above the midline will further strengthen the buyers grip over this asset. If the pattern holds true, the Dogecoin price could drive a 12% rally to challenge the resistance trendline of the wedge pattern.
A potential breakout from the wedge range will accelerate the buying pressure and drive a rally to a $0.144 resistance, followed by a $0.22 peak.
Data from Coinglass indicates that the DOGE Open Interest (OI)-Weighted Funding Rate stands at 0.00112. This positive rate suggests that long positions are dominant, reflecting a bullish sentiment in the market as traders are willing to pay a premium to maintain their positions.
If this trend continues, it could increase investors’ confidence, potentially driving the higher DOGE price.
On a contrary note, the 20-day Exponential moving average and $0.106 resistance stand as crucial resistance against the buyer’s motive. The coin price trading below daily EMAs (20, 50, 100, and 200) hints the path to least resistance is down. If the Dogecoin price reverts from these overhead resistances, the bullish breakout will be delayed, and sellers may drive an extended correction to $0.08.
Frequently Asked Questions (FAQs)
Dogecoin price has been hovering around the $0.1 level, showing a sideways trend over the past two weeks.
The DOGE Open Interest (OI)-Weighted Funding Rate is at 0.00112, indicating that traders are paying a premium to maintain long positions
The key resistance levels to watch are the 20-day Exponential Moving Average (EMA) and the $0.106 price point
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/dogecoin-price-0-12-bulls-premium-long-trades/
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