Dogecoin price it continues to slide down gradually, even seeming to fall “below the falling wedge pattern” before returning to this pattern again. This could mean that the structure of that wedge pattern is in play and is very, very close to implementation.
DOGE Is On The ‘Limit’ Of A Falling Wedge Pattern, A Crash Or Rally
Dogecoin (DOGE) its price was in a state of flux and commute for the majority of January. A price volatility of over 50%, followed by a 44% drop, followed by a 30% rally, has been a major concern for the bulls and bears.
The falling wedge pattern is a crucial factor for Dogecoin price. The falling wedge is the strongest standard geometric upward reversal pattern. It is the definition of excess and usually occurs at the extreme lows of an already oversold market.
According to Bulkowki, breakouts above the later retracting pattern are extremely rare and have almost always resulted in a continuation of the downtrend. However, after the Dogecoin price broke above and then below the falling wedge, sellers were either unable or unwilling to commit to further sales.
The end result of drastic fluctuations in price can be completed with a return to equilibrium within the falling wedge pattern. DOGE price Although it has fallen, not much has changed structurally. The time frame for Dogecoin price to decide the direction of the next breakout is fast approaching, the peak of the wedge will occur on February 2.
A break above the falling wedge is statistically the most likely move but DOGE will need to move at least 20% to 25% above the trendline near the $0.19 value area if the bulls are looking to prevent another go-to event.
While downside risks remain significant, Dogecoin is always at risk of a quick sell-off any time below the $0.16 price level. The Volume Profile will remain extremely thin at $0.16 to $0.09, so tight stops are necessary for the current value area.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.