The Dogecoin price has weakened recently following a very bearish month of August that sent the crypto market spiralling. Within the wake of this, multiple cryptocurrencies out there have begun to maneuver toward finding support in anticipation of a possible recovery. Dogecoin is not any different, but unlike a whole lot of others, the move toward support is signaling a rapid recovery for the DOGE price that might see it double from here.
Dogecoin And The Falling Wedge Pattern
With the decline in price, the Dogecoin price has formed a falling wedge pattern, as outlined by a crypto analyst Simon on TradingView. Now, because the meme coin continues to follow this falling wedge pattern, it holds numerous implications for the value. Certainly one of these is a possible price breakout depending on how well it’s capable of hold its price.
From here, the primary major support zone lies at $0.096, making it the extent to keep up if the bullishness is to proceed. Also, at this level, the crypto analyst points out that the Dogecoin price is seeking to break out of its descending resistance line. A successful break from here could trigger a 50% rally, putting its next resistance as high as $0.151.
If accomplished, this move shall be vital for the DOGE price as it would be the beginning of a notable rally. For the reason that next major resistance is at $0.151, it signifies that that is the extent to interrupt to proceed the rally. “A breakout above $0.151 could pave the way in which for an advance toward the following resistance zones, potentially driving the value even higher,” the crypto analyst explains.
If this breakout is accomplished, then the crypto analyst puts the Dogecoin price as high as $0.19. This 100% move, while bullish, will inadvertently put it in the trail of one other major resistance just above $0.19, one which could prove much harder to interrupt.
The Downside Of A Breakdown
Similar to with any evaluation, the analyst acknowledges a situation where the Dogecoin price could break down. This might occur if the Dogecoin price is unable to carry up above $0.096. Such a break below a very important support level could drive it farther down.
The crypto analyst further adds that momentum needs to maintain up to keep up the bullishness. “It’s essential to remain cautious. If momentum weakens at this support, we could see a pullback to the lower support area around $0.080-$0.087,” the analyst adds.
To shut, the crypto analyst tells investors to maintain a close eye on the DOGE price from here. “A each day close below this demand area could invalidate the bullish scenario and trigger further declines,” Simon warned.
Featured image created with Dall.E, chart from Tradingview.com