Dogecoin's price has recently experienced a sharp decline, but some interesting changes have appeared on the charts, which may indicate its future trend. Despite the low market sentiment, various technical patterns show that Dogecoin still has bullish potential, but the risk of a price collapse still exists, which may allow bearish sentiment to regain the upper hand.
Descending wedge pattern: bullish signals emerging
According to cryptocurrency analyst MyCryptoParadise, Dogecoin's price formed a descending wedge pattern after breaking below the $0.15 support level. This pattern has historically been a bullish signal, and Dogecoin is no exception. More importantly, this pattern appears after a 'character change' pattern, indicating that buyers are returning to the market. Other bullish signals include:
The RSI indicator shows hidden bullish divergence. The MACD indicator also shows bullish divergence. These factors together make up one of the most bullish trends among recent meme coins.
Recent price performance: support levels restored, changes in liquidity
In the past few days, Dogecoin's price has gradually regained some key support levels. The price crash cleared lower liquidity (referred to by analysts as 'induced buying'), leaving higher liquidity levels. If buying continues, this trend will further reinforce the bullish pattern and drive up prices. As long as Dogecoin can form a bullish candlestick pattern, the risk-reward ratio for betting on its rise is relatively high.
Potential risk: bearish possibilities may still exist
Despite clear bullish signals, Dogecoin is not without risks. If the price cannot hold above the $0.14 support level, breaking below $0.15 and declining by 15%, the bullish trend may fail, and the market will turn bearish. MyCryptoParadise points out: 'If the price breaks below and closes under the key support level, the bullish scenario will fail, and it is recommended to wait for a clearer market structure.'
Summary
Dogecoin currently shows bullish potential, with indicators like the descending wedge, RSI, and MACD supporting the possibility of price increases. However, investors should be cautious of the risk of prices breaking below key support levels. It is crucial to closely monitor price movements and changes in market structure before making investment decisions.
Dogecoin's price has recently experienced a sharp decline, but some interesting changes have appeared on the charts, which may indicate its future trend. Despite the low market sentiment, various technical patterns show that Dogecoin still has bullish potential, but the risk of a price collapse still exists, which may allow bearish sentiment to regain the upper hand.
Descending wedge pattern: bullish signals emerging
According to cryptocurrency analyst MyCryptoParadise, Dogecoin's price formed a descending wedge pattern after breaking below the $0.15 support level. This pattern has historically been a bullish signal, and Dogecoin is no exception. More importantly, this pattern appears after a 'character change' pattern, indicating that buyers are returning to the market. Other bullish signals include:
The RSI indicator shows hidden bullish divergence. The MACD indicator also shows bullish divergence. These factors together make up one of the most bullish trends among recent meme coins.
Recent price performance: support levels restored, changes in liquidity
In the past few days, Dogecoin's price has gradually regained some key support levels. The price crash cleared lower liquidity (referred to by analysts as 'induced buying'), leaving higher liquidity levels. If buying continues, this trend will further reinforce the bullish pattern and drive up prices. As long as Dogecoin can form a bullish candlestick pattern, the risk-reward ratio for betting on its rise is relatively high.
Potential risk: bearish possibilities may still exist
Despite clear bullish signals, Dogecoin is not without risks. If the price cannot hold above the $0.14 support level, breaking below $0.15 and declining by 15%, the bullish trend may fail, and the market will turn bearish. MyCryptoParadise points out: 'If the price breaks below and closes under the key support level, the bullish scenario will fail, and it is recommended to wait for a clearer market structure.'
Summary
Dogecoin currently shows bullish potential, with indicators like the descending wedge, RSI, and MACD supporting the possibility of price increases. However, investors should be cautious of the risk of prices breaking below key support levels. It is crucial to closely monitor price movements and changes in market structure before making investment decisions.
