Dogecoins price slips back after a fakeout, whats next for investors
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- Dogecoin price describes a falling wedge pattern and has been doing so since its all-time high in May.
- This pattern formed as DOGE crashed 85% from a peak of $0.740 in May.
- The crash pushed DOGE inside its bullish setup, where it awaits a breakout.
- This technical formation forecasts a 68% upswing to $0.241, determined by adding the distance between the first swing high and swing low to the breakout point.
- Although DOGE breached the wedges upper trend line on 25 April, it failed to sustain the momentum, leading to a reversal.
- Since this fakeout, the Dogecoin price has had many opportunities to break through but has failed every time.
- The recent crash in Bitcoin price affected DOGE but in slightly less capacity relative to other altcoins.
- Dogecoins price crashed 20% and came close to retesting the lower trend line of the falling wedge.
- Despite this downtrend, the recovery has been amazing; so far, the dog-themed crypto has rallied 15% and shows no signs of stopping.
- Assuming the crash continues, DOGE could retest the immediate support level at $0.087.
- Here, a bounce in buying pressure or prior to this level could trigger an uptrend that breaks out of the falling wedge.
- The resulting rally will propel the Dogecoin price by 68% to its forecasted target of $0.241.
- While the technicals are on the fence and show no clear directional bias, the social volume puts things into perspective.
- This metric tracks the mentions of DOGE on the internet and can be used to time the tops and bottoms of the rally if used correctly.
- Since 26 April, the social volume has dropped from 9,122 to 1,589, denoting an 82% slump.
- This trend suggests that investors are not interested in DOGE and are likely pulling their capital out, which paints a bearish picture.
