Dogecoin (DOGE) The price showed a big bullish promise last week after the uptrend it experienced. However, selling pressure was a major factor causing DOGE to pull back, delaying its breakout and thus the rally.
Dogecoin Price Has To Be Broken
Dogecoin price, which is down 85% from its all-time high of $0.740 and dropped to a low of $0.109 in late February. This drop, which lasted roughly less than a year, created three distinct lows highs and lows.
If we connect these swing points using trendlines, we will see a falling wedge pattern. The technical pattern predicts a 68% rise to $0.235, which is obtained by adding the distance between the initial high and low swing point to the breakout point.
Despite a 23% gain over the past week, DOGE has recaptured most of its gains. However, the weekly candlestick closed on a positive note, keeping hopes of a breakout from the falling wedge.
A weekly candlestick above $0.159 would provide confirmation of an uptrend and trigger a move towards the projected target of $0.235. Altogether, this increase would constitute an 80% gain from the current position at $0.131.
While things are looking optimistic for Dogecoin, Bitcoin price is hovering above a crucial support level. If this level is not held, the spillover could depress the Dogecoin price and negatively affect the bullish setup. If DOGE produces a weekly candlestick below $0.078, it will invalidate the falling wedge setup and hence bullish predictions will also be invalid.
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.