Dogecoin Price Hints Major Breakout Amid Wedge Formation
Dogecoin price prediction signals a potential breakout, attracting attention from traders. For the past two weeks, Dogecoin has been trading sideways, hovering around the $0.1 level. This consolidation suggests a possible shift away from the prevailing bearish momentum, as the price recently bounced back from the support trendline of the falling wedge pattern.
A falling wedge is a chart pattern with two converging trendlines, setting dynamic resistance and support levels that usually lead to a downtrend. The formation of this pattern indicates a weakening of bearish momentum, often culminating in a breakout through the upper resistance.
The MACD (Moving Average Convergence Divergence) indicator shows a positive crossover between its orange line and the blue signal line, highlighting recovering bullish momentum. If the lines cross above the midline, it will further solidify the buyer's control. Should this pattern hold, Dogecoin has the potential to rally by 12%, reaching the resistance trendline of the wedge.
A breakout beyond this wedge could significantly boost buying pressure, pushing the price to challenge the next resistance at $0.144, or even reach $0.22.
Market data reveals that the DOGE Open Interest (OI)-Weighted Funding Rate is 0.00112, indicating a dominance of long positions. This suggests traders remain bullish, ready to pay premiums to keep their positions.
If this positive sentiment persists, it could bolster investor confidence and drive Dogecoin prices higher.
On the flip side, the 20-day Exponential Moving Average (EMA) and the $0.106 resistance level pose significant challenges to buyers. The current trading below daily EMAs (20, 50, 100, and 200) indicates that the path of least resistance might be downward. A failure to break these resistances could delay the bullish breakout and potentially lead to an extended correction to $0.08.
