Despite the severe market crash since May 5, the price of Dogecoin, unlike many altcoins, appears to remain above its support level. The crash has pushed DOGE into its bullish setup awaiting a breakout.
Dogecoin price needs a reassessment
Dogecoin price is describing a descending wedge pattern and has been doing so since hitting an all-time high in May. This pattern formed when DOGE fell 85% from its May high of $0.740. This move to the south forms a base around $0.109 and looks set to buck the trend.
During this decline, Dogecoin price has established three notable lower highs and lower lows, which when connected to the trendline, show a descending wedge pattern.
This technical pattern predicts a 68% surge to $0.241, which is determined by adding the distance between the initial swing high and swing low to the breakout point.
Although DOGE broke the upper trendline of the wedge on April 25, it failed to sustain momentum, leading to a reversal. Since this fake, there have been many breakout opportunities for Dogecoin price, but it has failed each time.
The recent Bitcoin price crash has affected DOGE, but with a slightly smaller capacity compared to other altcoins. Dogecoin price plummets 20% and is about to retest the lower trendline of the falling wedge. Despite this downward trend, the recovery has been stunning. The dog-themed cryptocurrency is up 15% so far and shows no signs of stopping.
Assuming the crash continues, DOGE could retest immediate support at $0.087. A surge in buying pressure at or before this level could trigger an uptrend breaking out of the falling wedge.
The resulting rally would propel Dogecoin up 68% to the expected $0.241 target.
While the specs are yet to be determined and don’t show a clear direction, the amount of social makes things clear. This indicator tracks mentions of DOGE on the web and, if used properly, can be used to calculate bounce highs and lows.
Since April 26, social volume has dropped 82% from 9,122 to 1,589. This trend suggests that investors are not interested in DOGE and are likely to withdraw funds, painting a bearish picture.