In the midst of indecision in the crypto market dogecoin The price is showing a quiet recovery under the influence of two ascending trendlines. However, these converging trendlines are part of a bearish continuation pattern called the reverse flag project, the popular meme coin will face a longer correction. In the last five, the meme coin price has bounced back from the aforementioned trendline several times. This shows that traders are strictly following this chart setup.
Dogecoin Price Daily Chart
- A long-wicked rejection candle at the upper trendline indicates that the sellers continue to defend the bearish pattern.
- Breaking below the lower support trendline will lower the DOGE price by 20%.
- The 24-hour trading volume on DOGE is $739.5M, indicating a gain of 24%.
With an 8.76% intraday gain earlier today, DOGE price showed another attempt to break through the overall trendline of the inverted pennant. However, buyers faced active selling pressure at this trendline. This brought back the meme coin price and it is currently trading at $0.0724.
If the daily candle closes near the current level, the DOGE price could decline as the overall supply remains strong. The potential drop could push memecoin down 6-7% to retest the lower trendline.
NEWS CONTINUES BELOW
Until the two trendlines are solid, meme coin price could prolong the current recovery rally even further. However, buyers will get a better confirmation of the bullish rebound as the meme coin price manages to break through the upper trendline.
Will DOGE Price Rebound Continue?
The converging trendline of the pennant pattern indicates that DOGE price is ready for a breakout opportunity. Although the mentioned pattern is a downtrend continuation pattern, meme coinis likely to break the lower trendline. This breakout will release the accumulated selling pressure and push the meme coin price back to the $0.053 mark.
Exponential Moving Average: The 200-day EMA acts as an important resistance, reflecting that the overall trend is still bearish.
Relative strength index: The daily RSI slope shows significant growth for the same high price around $0.075, indicating weakening of buyer’s attempts to raise the price.