Cover image via U.Today
Dogecoin (DOGE), the dog-themed cryptocurrency, is currently facing a significant price test. Crypto analyst Ali describes DOGE as being "at the edge," with its future trajectory uncertain. The question is whether it will break out or consolidate.
Ali shared a weekly Dogecoin price chart illustrating price movement within an ascending channel—a bullish pattern characterized by a trendline supporting higher lows and a diagonal resistance line connecting higher highs. Within this channel, price bounces off both upper and lower boundaries; repeated reversals strengthen the pattern's reliability.
Ali's analysis highlights Dogecoin's rebound from the ascending channel's trendline support, observed between 2020 and 2021. This historical precedent fuels bullish expectations for a potential rally.
Currently, DOGE has again touched this trendline support, historically a springboard for upward momentum. However, market uncertainty remains, and the coming days will be crucial in determining DOGE's direction.
Potential Scenarios
If DOGE successfully holds the support level near $0.16, a rally towards higher resistance levels is possible. Ali's chart suggests a potential target of $6.33.
While the ascending channel pattern offers positive prospects, it's important to remember that, like any pattern, false or premature breakouts can occur, potentially leading to price reversals within the channel.
Conversely, a breakdown below the trendline support could trigger a bearish trend, resulting in potential losses for traders. Dogecoin recently found support at $0.143, aligning with the 200-period Simple Moving Average (SMA) on the weekly chart.
The market is closely monitoring the charts, awaiting a decisive move by buyers to initiate a new uptrend for Dogecoin. Read the original article on U.Today
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