Dogecoin Growth Canceled? DOGE Price Saga Takes Unexpected Turn

Cover image source: U.Today

Dogecoin's Bullish Wedge Pattern

In recent weeks, Dogecoin (DOGE) has been gaining attention due to a bullish falling wedge pattern on its price chart. Since reaching its yearly high of $0.2288 in March, DOGE has lost over 62%. However, the downtrend appears to have halted in early September at $0.8893.

During its decline, DOGE formed a bullish wedge pattern, creating a range with significant resistance and support levels. Two previous attempts to break out of this pattern in May and July failed. This month, DOGE made another attempt, which initially seemed promising.

Source: TradingView

However, the breakout was met with resistance, resulting in a 3.2% drop in DOGE's price.

Analysis

While it is not unusual for a resistance level to be tested multiple times, it is crucial for Dogecoin bulls to demonstrate a strong willingness to break out of the wedge pattern. A successful breakout could lead to a significant rally for the popular meme coin.

On the other hand, if the resistance holds, Dogecoin may continue to trade within the wedge pattern until a clear breakout occurs.