Bearish Pattern Puts DOGE Price On 10% Downside Risk

Dogecoin Price Prediction: Amid the increasing bearishness in the crypto market, Dogecoin price moved in a sideways trend over the past six weeks. However, during this consolidation, the prices actively reverted from a descending training and horizontal support of $0.793, indicating the formation of a descending triangle pattern. Here’s how this bearish continuation pattern may influence the dogecoin’s near-future price

Key Points:

• The formation of lower highs within the triangle pattern indicates the gradual increase of bearish momentum.
• A bearish breakdown below the $0.793 support will complete the descending triangle pattern 
• The 24-hour trading volume in the Dogecoin coin is $325.5 Billion, indicating a 27% gain.

Dogecoin Price Prediction: $0.793 Support Breakdown Will Offer Short-Selling Opportunity

Source-Tradingview

The last four-week price action in the Dogecoin price shows the formation of a descending triangle. The coin price has retested the pattern’s resistance trendline and horizontal support several times indicating the traders are actively responding to this pattern and would do the same for its potential target. 

By the press time, the Doge price traders at $0.082 and continue to hover above the $0.08 neckline support. However, the area between this trendline and neckline support is shortened enough to be considered a no-trading zone.

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Under the influence of the triangle pattern, this memecoin is likely to breach the $0.08 support level. A daily candle closing below the neckline support will accelerate the selling pressure and dump the price 10.5% down to hit $0.071, followed by $0.0663 support.

On the contrary note, a breakout above the downsloping trendline will undermine the bearish thesis.

Technical indicator

RSI: The daily RSI slope moving below the midline indicates the market sentiment is in the seller’s favor.

Bollinger band: the Bollinger band indicators’ lower band moving along with the $0.0793 support accentuate the importance of this chart level.

Dogecoin Price Intraday Levels

• Spot rate: $0.082
• Trend: Bullish
• Volatility: High 
• Resistance levels- $0.096 and $0.109
• Support levels- $0.073 and $0.071