A falling wedge has been detected on the charts of Dogecoin (DOGE), the eighth-largest cryptocurrency by market capitalization, which could be considered a sign of a bullish trend reversal.
A wedge formation can occur before the final stage of a trend, when the price of an asset is trending down over time. The trendline formed above the highs and below the lows on the price chart began to converge as the downward price momentum lost and buyers entered the market.
The price may break the upper trendline before the two lines come together. Once the price breaks above the upper trendline, the asset may tend to resume its uptrend. A falling wedge is interpreted as a bullish indicator because it shows that buyers are starting to enter the market to stop the price from falling.
What to expect from Dogecoin price?
After touching $0.1048 on April 3, Dogecoin has shown a steady downward trend. Efforts to restart the uptrend stalled at $0.095 on April 18. At the time of writing, Dogecoin is trading at $0.071, up 0.51% over the past 24 hours.
Dogecoin appears to be facing serious resistance above its current price, according to IntoTheBlock data.
This is because 586,250 addresses in the $0.073 to $0.086 range bought 47.48 billion Dogecoins. IntoTheBlock’s global money in/out data represents the top regions buying Dogecoin.
According to the technical charts, the key resistance levels for Dogecoin price are the daily MA 50 at $0.078 and the MA 200 at $0.081, levels below which DOGE has been trading since April 22.
Disclaimer: The information presented is subject to market conditions and contains the author’s own opinions. Please do “your own” market research before investing in cryptocurrencies and follow the information above. Neither the author nor the publication (btcmagazin.com) accepts any responsibility for your financial losses.
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Source of information: Compiled from BTCMANAZIN by 0x information.Copyright belongs to the author Guci, without permission, may not be reproduced