Dogecoin forms a bullish falling wedge on the 4-hour chart, signaling a potential breakout.
Key support holds near $0.164, with analysts eyeing a possible rally back to the $0.2600 level.
Rising exchange outflows and positive funding rate suggest building investor confidence in DOGE.
Dogecoin has formed a falling wedge on the 4-hour chart, pointing onto a swing low support level. The pattern suggests that downward momentum is decreasing as the coin approaches the wedge's apex. This setup is often seen in technical analysis as a potential signal for a bullish reversal.
Falling Wedge Pattern Points to Potential Recovery
Trader Tardigrade, a crypto analyst, noted that Dogecoin’s price is forming a falling wedge pattern, which could indicate a rebound. This formation has two downward-sloping trendlines converging and usually ends in a breakout on the upside. The current support is holding near $0.164, which has stopped further decline for now.
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The coin has dropped about 35% from its May high of $0.2600 and now trades at $0.1686. However, buying pressure appears to be building at key support levels. If the price breaks above the wedge’s upper boundary, there is a possibility of a rally toward $0.2600, which would represent a recovery of over 50%.
Crypto analyst Javon Marks observed that Dogecoin is continuing to form higher lows, a sign that upward pressure is still present. He suggested that DOGE may rally as high as $0.6533 in the short term and potentially extend toward $1.25, based on historical price patterns.
Exchange Outflows and Market Trends Support Bullish Outlook
CoinGlass data shows a consistent trend of Dogecoin exchange outflows since late 2023. Over $5 billion in DOGE has been moved off exchanges, with $658 million withdrawn since early May. This movement often signals that holders are choosing self-custody, which reduces selling pressure on exchanges.
Additionally, Dogecoin's funding rate has stayed positive since June 13, currently at 0.0056%. A positive funding rate reflects expectations of future price increases by market participants.
DOGE’s technical setup, coupled with reduced exchange supply and bullish on-chain signals, could support a reversal. The pattern forming on the H4 chart continues to attract traders’ attention.
The post Dogecoin Forms Falling Wedge on H4 Chart, Here’s Why $0.2600 Could Be Back in Play appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
