Dogecoin (DOGE), the eighth largest cryptocurrency by market capitalization, might be hinting at a price reversal; a falling wedge pattern has been spotted on its chart, which suggests a bullish trend reversal.
A wedge pattern can form when the price of an asset has been declining over time, right before the trend’s last downward movement.
As the price slide loses momentum and buyers enter the market to halt the rate of decline, the trend lines formed above the highs and below the lows on the price chart pattern may converge.
🐕 #Dogecoin breaks free from the falling wedge pattern!
📈 After a prolonged consolidation $DOGE is signaling a #bullish trend reversal. pic.twitter.com/NUHk5RQc10
— Satoshi Club (@esatoshiclub) May 26, 2023
The price may break through the upper trend line before the lines merge. The asset is anticipated to revert and trend higher when the price breaks the upper trend line.
A falling wedge pattern is interpreted as a bullish indication because it shows that buyers are beginning to enter the market to stop a falling price from continuing.
What’s next for Dogecoin price?
Dogecoin has been on a steady decline since reaching highs of $0.1048 on April 3. Attempts to restart an uptrend met a wall at $0.095 on April 18.
At the time of writing, Dogecoin was up 1.14% in the last 24 hours to $0.071. According to IntoTheBlock data, Dogecoin faces a stiff barrier slightly above its current price.
This is because 586,250 addresses bought 47.48 billion Dogecoin in the $0.073 to $0.086 range. This represents the area where the most Dogecoin was bought, per IntoTheBlock’s Global In/Out of money.
Per technical charts, major barriers for the Dogecoin price are envisaged in the daily MA 50 at $0.078 and MA 200 at $0.081, below which DOGE has traded since April 22.