Dogecoin (DOGE) is currently trading in an uptrend, with the price action forming a rising wedge pattern on the charts. This technical setup suggests the potential for a breakout in the near future.
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Rising Wedge Pattern: Bullish or Bearish Breakout?
According to the technical analysis provided by altFINS, a rising wedge pattern typically forms after an uptrend and can indicate a potential bearish reversal in the original uptrend. The pattern is characterized by converging trendlines, with the price making higher highs and higher lows. Traders should be prepared for either a bullish or bearish breakout from this pattern.
In the case of a bullish breakout, Dogecoin could see a continuation of its uptrend, with the next upside target set at $0.20. However, if the price breaks below the lower trendline of the wedge, it could signal a trend reversal, with a potential downside risk to $0.12.
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Trend and Momentum Analysis
Currently, Dogecoin’s short-term, medium-term, and long-term trends are all pointing upwards, indicating a strong bullish sentiment in the market. However, the momentum has recently turned bearish, with the MACD (Moving Average Convergence Divergence) line crossing below the MACD signal line a few days ago. This bearish crossover suggests that the upward momentum may be slowing down.
The RSI (Relative Strength Index) indicates that Dogecoin is neither overbought nor oversold, with the RSI-14 level remaining between 30 and 70. This neutral position leaves room for the price to move in either direction, depending on the breakout from the rising wedge pattern.
altFINS has identified the nearest support zone for Dogecoin at $0.13, followed by $0.11. On the upside, the nearest resistance zone is located at $0.17, with the next resistance level at $0.20. These levels will be crucial in determining the direction of Dogecoin’s price action following the breakout from the rising wedge pattern.
Potential for New All-Time Highs
While the rising wedge pattern suggests a potential bearish reversal, analyst JAVON MARKS has a more optimistic outlook for Dogecoin. According to MARKS, the current breakout trend indicates that Dogecoin could be on its way to new all-time highs, with the potential for a more than 4x increase in price.
The analyst even suggests that a Dogecoin price of over $10 may be possible based on the current trend.
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