Dogecoin Rising Wedge Pattern Suggests Potential Breakout: DOGE Could Spike To $10

Dogecoin (DOGE) Soars in Uptrend, Rising Wedge Signals Breakout Potential

Dogecoin (DOGE) is currently experiencing an upward trend, with its price action forming a rising wedge pattern on charts. This technical configuration indicates the possibility of a breakout in the near future.

Rising Wedge Pattern: Bullish or Bearish Breakout?

According to altFINS, a rising wedge pattern typically appears after an uptrend and can suggest a potential bearish reversal. It is characterized by converging trendlines and price action creating higher highs and higher lows. Traders should anticipate either a bullish or bearish breakout from this pattern.

If a bullish breakout occurs, DOGE could continue its uptrend, with the next target set at $0.20. However, if the price falls below the wedge's lower trendline, it could signal a trend reversal, potentially reaching a downside risk of $0.12.

Trend and Momentum Analysis

Currently, Dogecoin exhibits bullish sentiment in the short-term, medium-term, and long-term trends. However, the momentum has recently shifted bearish, with the MACD (Moving Average Convergence Divergence) line crossing below the MACD signal line several days ago. This bearish crossover suggests that the upward momentum may be decelerating.

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 allows the price to move in either direction depending on the breakout from the rising wedge pattern.

altFINS has identified support zones at $0.13 and $0.11, while resistance zones are located at $0.17 and $0.20. These levels will be critical in determining the direction of Dogecoin's price action following the breakout from the rising wedge pattern.

Potential for New All-Time Highs

Despite the rising wedge pattern indicating a potential bearish reversal, analyst JAVON MARKS maintains an optimistic outlook. According to MARKS, the current breakout trend suggests that Dogecoin could reach new all-time highs, with the potential for a price increase of over 4x. The analyst even speculates that a Dogecoin price exceeding $10 is possible based on the present trend.