Dogecoin has had a rather disappointing week on the charts. A symmetrical triangle breakdown played out in favor of the bears, while short-sellers initiated further drawdowns below $0.280. In reality, DOGE was the worst weekly performer among the many prime 10 cash, down by over 11%.
On the plus side, DOGE’s descending wedge presented chances of an incoming price hike and a comeback above 15th August’s swing high of $0.35. On the time of writing, DOGE traded at $0.290, with a market cap of $38.12 Billion.
Dogecoin 12-hour Chart
Before jumping into a broadening wedge setup, it is important to understand that this pattern was yet to fully take shape. In reality, one other low was projected at $0.280. In case of an early breakout, DOGE would first need to decisively close above the 20-SMA (red).
This may push DOGE in the direction of subsequent targets at $0.35 and twenty fifth Might’s swing excessive of $0.38. On the other hand, a low formed below $0.26 would present chances for short-sellers to trigger additional losses.
Reasoning
After DOGE reversed from its 12-hour 200-SMA, a number of of its indicators famous key developments. For instance, the RSI avoided a dip into bearish territory and remained close to equilibrium, lending weight to a favorable recovery.
In the meantime, MACD approached a bullish crossover as promoting stress eased, previously few days. Similarly, the Directional Movement Index was also on the precipice of an important crossover above the -DI line. All these indicators functioned as purchase triggers available in the market.
Conclusion
After logging in recent losses, Dogecoin set the tone for an upward price swing. Its value traded inside the confines of a descending wedge setup – a sample that often triggers an upwards breakout.
Take-profits can be set between $0.35-0.38, in the event of such an outcome. Nevertheless, earlier than such a transfer, a low may very well be shaped at $0.280, presenting an ideal buy opportunity for bullish traders.
