Bearish Triangle Pattern
Crypto analyst Crypto Daily Trade Signals has warned that Dogecoin (DOGE) could face a downside risk due to a descending triangle pattern. This pattern indicates a series of lower highs and a flat support level at $0.121.
Despite the support level, the bearish market conditions driven by Bitcoin’s decline could weaken it. The analyst notes that DOGE has tested the support level three times, and investors hope it will hold.
Additional Bearish Indicators
DOGE is also trading below its 50-day and 200-day moving averages, further indicating a bearish trend.
Potential Breakout or Decline
If DOGE rebounds from the current price point, it could break out of the triangle and reach $0.237. However, resistance levels at $0.182 and $0.206 could make this challenging.
If DOGE falls below the triangle’s base, the analyst predicts a decline to $0.96 and potentially even $0.072.
Investor Pessimism
The technical analysis comes at a time when Dogecoin is struggling to gain traction. The general market decline has dampened investor sentiment, and DOGE continues to face bearish pressures.
Current Market Situation
Despite the bearish outlook, DOGE is currently trading at $0.125, up 2.79% in the past day. Its market cap has increased, but trading volume has decreased. The recent bullish momentum suggests that DOGE may have potential for further gains in the coming days.
