Dogecoin Price Eyes Major Reversal Amid Wedge Pattern Formation

Dogecoin price is undergoing a consistent correction influenced by a falling wedge pattern. The price has resonated between two converging trendlines

Dogecoin price remained under pressure on Thursday evening as the broader market sentiment turned sour. The flagship cryptocurrency Bitcoin dropped below the $60,000 level once again, dragging most major cryptocurrencies into the red.

Dogecoin price showed resilience despite the bearish market mood, adding a slight gain of 0.26% over the last 24 hours. However, the meme coin remained bound within a falling wedge pattern on the daily chart, indicating a corrective phase.

A closer examination of the price action revealed four bounce-back opportunities at the support trend line within the falling wedge pattern. This observation suggests strong support at the lower trend line.

On the other hand, the resistance trend line showed only three reversals, indicating less resistance at the upper trend line.

Despite the support, the rising bearish influence led to a death cross event, with the 100 and 200 EMA performing a bearish crossover. This technical event occurs when a short-term moving average crosses below a long-term moving average, indicating bearish momentum.

Moreover, all the crucial EMAs in the daily chart maintained a bearish alignment, indicating a bear market trend. Additionally, the 20-day EMA and 50-day EMA acted as dynamic resistances to keep the bullish growth in check.

At the time of writing, Dogecoin price was trading at $0.09825. A closer analysis of the price action on the lower time frame revealed a lower price rejection in the previous candle, indicating a high possibility of a bullish cycle to challenge the overhead trend line.

A potential breakout from wedge resistance will signal a major trend reversal, offering buyers suitable support to maintain a bullish outlook. The Dogecoin price prediction signals the post-breakout rally could target $0.15, registering a potential 40% rally.

1. Dogecoin price is correcting after a rapid ascent. The price action formed a falling wedge pattern on the daily chart, indicating a potential breakout. However, key moving averages and technical indicators suggest a bearish continuation.

2. Dogecoin price faced resistance at the upper trend line of the falling wedge pattern and the 200 EMA. A breakout from the wedge resistance could signal a major trend reversal.

3. Support levels on the lower time frame are crucial for Dogecoin price. A breakdown of the $0.091 support could lead to a massive correction in the meme coin.

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