Dogecoin was struggling beneath its immediate resistance mark over the past 72 hours. The meme coin was seen consolidating on its charts.
In the last 24 hours, Dogecoin barely displayed any price action. Bitcoin was seen trading above the $40,000 mark finally which displayed signs of strength, altcoins were yet to follow the same price action. The current price movement of Doge has managed to invalidate its recent rally.
If the coin manages to break past the $0.151 mark, the coin can begin to rally again providing respite to traders. Currently, Dogecoin has been moving between the price levels of $0.130 and $0.150 respectively.
The global cryptocurrency market capitalisation was at $1.93 Trillion with an increase of 2.2% over the last 24 hours.
Dogecoin Price Analysis: One-Week Chart
Dogecoin was almost 90% down from its all-time high of $0.737 to its all-time high low of $0.109 this year. Despite this, DOGE flashes bullish price sentiments on its charts. The price correction of the meme-coin has formed a falling wedge pattern.
The aforementioned pattern is considered a bullish pattern, which occurs after a bearish price action. During a falling wedge, the asset is seen consolidating right before it breaks off from the upper trend line.
The price of Dogecoin is seen at the absolute end of the upper trendline, this could mean that the meme coin would finally flash signs of recovery. Immediate resistance for the coin stood at $0.150 and then at $0.190 respectively.
During a falling wedge pattern, bears temporarily take over the market as buyers lose vigour due to an increase in price briefly. The second phase is consolidation, which is where Dogecoin stands now. After the aforementioned phase, Dogecoin can be expected to rally.
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Dogecoin Short Term Technical Analysis
Short-term technicals for Dogecoin point at lateral price movement which sides with the falling wedge pattern. Buyers were lesser than sellers in the market which is why the coin was seen parked below the 20-SMA line. This has indicated that sellers drove the price momentum in the market currently.
On the Relative Strength Index, the coin noted an uptick indicating that buyers were trying to re-enter the market. At press time, buying strength remained less due to the consolidation phase. With the uptick, buying strength could return and Dogecoin could aim to break its nearest price resistance marks.
Other Metric That Supports The Bullish Outlook
Market Value To Realised Value is the ratio of an asset’s market capitalization to its realized capitalization. This indicator is primarily used to calculate the average profit/loss of the investors that have purchased the asset over a period of time.
If the value hovered between -10% to -15% then short-term holders are considered to be experiencing a loss. Long-term traders, however, get into an accumulation zone when the metric hits the above-mentioned zone.
In the above diagram, the indicator hovered at -37% which is considered to be a point for price reversal. This reading is in accordance with the overall long-term as well as short-term technical outlook for the coin.
It is to be considered that, the whole narrative could experience an invalidation if the broader market continues to display weakness.
Suggested Reading | Dogecoin (DOGE) Struggles, Drops 9% After Elon Musk Twitter Buyout
Source: https://www.newsbtc.com/news/dogecoin-displays-a-falling-wedge-pattern-heres-what-it-means/