Dogecoin Drops 8% as Chart Patterns Signal Changes: Will Bulls Step In?
- Dogecoin’s weekly chart shows an Ascending Broadening Wedge pattern, marking market volatility.
- A breakout above the resistance at point E ($0.47) confirms the pattern and sets a Dogecoin price target near $3.8.
Dogecoin has reported a downward trend in the last 48 hours after the cryptocurrency was unable to hold the $0.20 level. However, an observation on the DOGE weekly chart indicates that the asset has formed an Ascending Broadening Wedge pattern, defined by six key pivot points labeled A through F, illustrating an expanding price range with higher highs and higher lows.
Dogecoin Current Price Action Revealed
Tracking the ongoing market movement, CoinMarketCap data indicates that DOGE opened its market with a price value of $0.1997, which has continued to dip to the current market levels. As of press time, Dogecoin’s price declined by 8.76%, settling at $0.1887, while its market capitalization decreased to $28.2 billion.
The 24-hour trading volume rose by 23.25% to reach $2.3 billion, indicating increased market activity despite the price drop. The chart shows a downward trend from a high of $0.2071 to the current level. The volume-to-market-cap ratio stands at 8.17%, reflecting moderate trading pressure during the recent decline.
Structure of the Ascending Broadening Wedge
According to Trader Tradigrade’s analysis, Point A marks the beginning of the wedge’s upward trend, followed by a downward correction to point B. After this pullback, the price climbs to point C, creating a higher high compared to point A. A subsequent retracement to point D remains above the previous low at B, maintaining the wedge’s rising support line.
Prices at point E reach the highest value, which is the top boundary for upward resistance. The price ends up falling from peak B to point F, which is just next to the lower trendline in the pattern. The difference between highs and lows started to grow from points A-B to points C-E, meaning the market started to be more volatile.
Confirmation and Target Level
Despite the ongoing dip, the analyst is optimistic, as a horizontal resistance line drawn through point E serves as the confirmation level for the pattern. Once the price breaks above this line, it confirms the wedge’s breakout. The measured distance from the wedge’s bottom to point E is projected upward from the breakout, setting a Dogecoin target price at approximately $3.8. This breakout level acts as a critical threshold, signaling potential momentum gains.
Weekly candlesticks are used in the chart to show trends that last a few weeks. Following point F, the price becomes steady before it comes close to the point needed for a clear breakout. The pattern becoming wider suggests an increase in market volatility as the wedge progresses, which leads to an expected breakout.
Read More
TRON (TRX) Price Watch: Steady Climb or Sudden Slide Ahead?
Dogecoin Drops 8% as Chart Patterns Signal Changes: Will Bulls Step In?
- Dogecoin’s weekly chart shows an Ascending Broadening Wedge pattern, marking market volatility.
- A breakout above the resistance at point E ($0.47) confirms the pattern and sets a Dogecoin price target near $3.8.
Dogecoin has reported a downward trend in the last 48 hours after the cryptocurrency was unable to hold the $0.20 level. However, an observation on the DOGE weekly chart indicates that the asset has formed an Ascending Broadening Wedge pattern, defined by six key pivot points labeled A through F, illustrating an expanding price range with higher highs and higher lows.
Dogecoin Current Price Action Revealed
Tracking the ongoing market movement, CoinMarketCap data indicates that DOGE opened its market with a price value of $0.1997, which has continued to dip to the current market levels. As of press time, Dogecoin’s price declined by 8.76%, settling at $0.1887, while its market capitalization decreased to $28.2 billion.
The 24-hour trading volume rose by 23.25% to reach $2.3 billion, indicating increased market activity despite the price drop. The chart shows a downward trend from a high of $0.2071 to the current level. The volume-to-market-cap ratio stands at 8.17%, reflecting moderate trading pressure during the recent decline.
Structure of the Ascending Broadening Wedge
According to Trader Tradigrade’s analysis, Point A marks the beginning of the wedge’s upward trend, followed by a downward correction to point B. After this pullback, the price climbs to point C, creating a higher high compared to point A. A subsequent retracement to point D remains above the previous low at B, maintaining the wedge’s rising support line.
Prices at point E reach the highest value, which is the top boundary for upward resistance. The price ends up falling from peak B to point F, which is just next to the lower trendline in the pattern. The difference between highs and lows started to grow from points A-B to points C-E, meaning the market started to be more volatile.
Confirmation and Target Level
Despite the ongoing dip, the analyst is optimistic, as a horizontal resistance line drawn through point E serves as the confirmation level for the pattern. Once the price breaks above this line, it confirms the wedge’s breakout. The measured distance from the wedge’s bottom to point E is projected upward from the breakout, setting a Dogecoin target price at approximately $3.8. This breakout level acts as a critical threshold, signaling potential momentum gains.
Weekly candlesticks are used in the chart to show trends that last a few weeks. Following point F, the price becomes steady before it comes close to the point needed for a clear breakout. The pattern becoming wider suggests an increase in market volatility as the wedge progresses, which leads to an expected breakout.
Read More