Dogecoin To $0.15: Analyst Explains What Could Kick Off A Fresh Rally
09 Setembro 2024 - 2:30PM
NEWSBTC
An analyst has explained how Dogecoin has been forming a Falling
Wedge pattern recently, breaking which may kickstart a new bull
rally. Dogecoin Has Been Moving Inside A Falling Wedge Recently In
a new post on X, analyst Ali Martinez has discussed a pattern that
has recently been forming in the 1-day price of Dogecoin. The
pattern in question is the “Falling Wedge” from technical analysis
(TA), which is a type of Wedge. A Wedge pattern appears when the
price of the asset consolidates between two converging trendlines
(that is, the lines have different slopes and are angled inwards).
Depending on where this consolidation is headed, the pattern is
termed as Falling or Rising. Related Reading: Why Has Bitcoin Been
Bearish Lately? CryptoQuant Head Chimes In In a Falling Wedge, the
upper line of the pattern connects lower highs in the price, while
the bottom one connects lower lows. Similarly, a Rising Wedge has
the upper line joining together higher highs and the lower one with
higher lows. Just like other TA consolidation patterns, the upper
line may continue to act as a source of resistance in the near
future, while the lower one may provide support. Also, a break out
of either of these trendlines can suggest a continuation of pattern
in that direction. Wedges specifically are considered to be
formations that lead to a reversal, so a break in the direction
opposite to that of the Wedge may be considered to be more likely.
Dogecoin has recently been showing a Wedge-like consolidation
towards the downside in recent months, so the coin may be forming a
Falling Wedge pattern. Below is the chart shared by Ali that
showcases this formation. As is visible in the graph, the Dogecoin
price has recently made an apparent retest of the bottom line of
this Falling Wedge pattern and has found support at it. Thus, it’s
possible that DOGE may now see a surge towards the upper trendline.
Before the coin retests the upper line, though, there is perhaps
another important level it has to surpass first: the 0.236
Fibonacci Retracement level. Fibonacci Retracement levels are based
on ratios that are found in the famous Fibonacci series. These
levels correspond to the percentage of drawdown as measured between
two fixed levels. In the current case, Ali has taken the top of the
Falling Wedge as the start of these levels (that is, the 100% or 1
mark). Related Reading: Bitcoin Momentum Indicators Are All Showing
Death Cross: Say Hello To Bear Market? The analyst notes that if
Dogecoin can manage a sustained close above the $0.10 level (that
is, above the 0.236 Fibonacci Retracement), it may be able to start
a rally toward the $0.15 level. From the current price of the
memecoin, such a potential run would mean an increase of around
53%. It now remains to be seen how DOGE develops in the coming days
and whether it would be able to follow any similar trajectory or
not. DOGE Price Dogecoin had fallen under the $0.090 mark a couple
of days back, but the asset appears to have rebounded as it has now
recovered to $0.098. Featured image from Dall-E, charts from
TradingView.com
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