The price of Dogecoin has closed below the bottom trend line of a symmetrical triangle pattern, indicating that it will continue to fall.
As the cryptocurrency complex has again another bad day, the descending trend line at $0.223 provides support.
On the 12-hour chart, a bearish Death Cross formation may intensify negative pressure on DOGE.
The price of Dogecoin rebounded from the 200-day simple moving average (SMA) on June 22, signaling a bullish shift from the price behavior that characterized much of May and June. Following the low’s rally, the price action established a symmetrical triangle pattern, which was triggered today by a 12-hour closure below the triangle’s lower trendline. It’s a negative development that has some people worried about DOGE’s future plans, but May’s descending trend line will be the final judge.
Dogecoin pricing began a convincing recovery off the 200-day SMA at $0.150 on June 22, with above-average volume, and was followed by a 23 percent rise on June 23, the highest gain since the 25 percent gain on May 13. Big money likes to go towards actionable support levels that offer exceptional value, as evidenced by the significant increase in DOGE volume mixed with the conviction of the rebound from the strategically key moving average.
The importance of the bullish bid swiftly pushed Dogecoin’s price to the $0.288 intersection of May’s descending trend line and the $0.296 23.60 percent retracement of the May-June correction. Since June 25, the high DOGE has been coiling in a symmetrical triangular shape, releasing the rally’s price compression.
It projected stronger price outcomes for the meme token as a continuation pattern, but today’s closing below the triangle’s bottom trend line calls into question the original bullish view. Furthermore, the bearish Death Cross pattern on the 12-hour chart serves as a warning to DOGE investors who are anticipating an easy path to rising prices.
DOGE’s symmetrical triangle measured movement is 21%. The Dogecoin downside price objective is $0.193 based on the position of the triangle’s lower trend line today, taking the meme currency below May’s declining trend line, which is currently at $0.223.
However, today’s decline could be a bear trap, as the price of Dogecoin has been forced on the defensive due to the pressure of a poor cryptocurrency market and increased interest in Baby Doge Coin. As a result, as long as May’s descending trend line around $0.223 holds, DOGE has a solid foundation to build on.
12-hour chart of DOGE/USD
If Dogecoin pricing fails to hold May’s descending trend line, the digital currency might face persistent selling pressure, forcing it to test the 200-day SMA at $0.166 and possibly sweep the June 22 low $0.152, representing a 20% drop from current levels.
Dogecoin price’s impressive response to the 200-day SMA was led by renowned investors. Nonetheless, the bullish perspective is under pressure today due to the breakdown from the symmetrical triangle, as $0.223 provides significant intra-day support, making it the ultimate word on the future outlook.
With a brief technical and on-chain analysis on Dogecoin pricing, FXStreet’s analysts assess where DOGE could be headed next./n
