Wedge Pattern Retest Phase Warns $0.08 Fallout

A bearish fallout from a yearly falling wedge pattern suggested the Dogecoin(DOGE) price witnessed a significant freefall. However, the lower price rejection at the retest phase puts a possibility on the cards and traps the aggressive sellers.

Key points:

• The DOGE price broke under $0.10 after a 28.5% fall last week.
• The 24-hour trading volume in the Dogecoin coin is $1.56 Billion, indicating a 337% gain.

Source-Tradingview

The Dogecoin(DOGE) price fell sharply after the 2021 bull run resulting in the formation of a falling wedge. The downfall within the bearish pattern devalues market value by 88%. 

The selling pressure has grown gradually within the bearish pattern and recently breaks below the support trendline and $0.10 with a bearish engulfing candlestick. However, the buyers temporarily take back the trend control at $0.080 to retest the broken trendline.

The higher price rejection due to selling faced near the broken trendline increases the chances of a post-retest reversal. Therefore, traders can expect a breakout entry once the market value crosses under $0.082 and can target the low of $0.045.

The bearish theory will be invalidated if buyers find a closing above $0.10 and trap the sellers. In this case, the bulls can achieve the target of reaching the resistance trendline close to $0.13.

Technical indicator

This week’s sudden fall in DOGE market value undermines the bullish crossover of the 50 and 100-day EMA and might shortly regain a bearish alignment. However, the discussed bearish contingency possibility can find opposition near the EMAs, and traders can target it as an exit spot.

The possibility of a trend reversal increases with the VI lines displaying the start of another bullish crossover attempt. However, a post-retest reversal will sabotage the bullish attempt and continue the bear cycle further.

• Resistance levels- $23.1 and $25.6
• Support levels- $20.2 and $17.4

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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.