Dogecoin Breaks Above Falling Wedge Pattern – Analyst Sets $0.43 Target
Dogecoin traded below key levels after falling more than 10% after last night’s bullish price action. The meme coin market continues to struggle, and Dogecoin is no exception. Doge has failed to recover its previous highs since late January and has kept its prices low every week. Investors are becoming more cautious because sales pressure remains high, thus preventing any meaningful recovery.
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Despite recent declines, some analysts remain optimistic about Doge’s long-term outlook. Top analyst Carl Ununefelt shared a technical analysis on X, suggesting that Doge has recently departed from the long-dropped wedge pattern and is now retesting it. Historically, the drop of the wedge breakout has resulted in a large amount of upward movement, as long as the breakout has been confirmed.
if Dogecoin perseverance A breakout above this critical level and successfully confirmed, a huge price shift may occur subsequently and potentially reverse the bearish trend. However, if this level is not reached, it may lead to further declines, pushing Doge toward lower demand areas. The next few days are crucial to identifying Dogecoin’s short-term price direction as traders pay attention to confirming a breakout or another sign of recession.
Investors continue to sell Dogecoin: Can this change?
Dogecoin is facing a critical test as it tries to exceed critical resistance without lowering critical demand levels. The Bulls are now working to regain lost territory that could trigger major rally, but in the near term, price action remains uncertain.
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The meme coin market has been under enormous sales pressure, and despite multiple breakthrough attempts, Dogecoin is still working to determine strong demand. Investors are watching the signs of power closely, but so far, the Bulls have failed to generate the momentum needed to continue recovery.
Runeffert’s technical analysis Revealing Doge’s recent long-dropped wedge pattern, which is now being retested. Historically, the emergence of a wedge breakthrough has led to explosive price changes, and it is enough to break through. If the breakout remains the same, the symbolic symbol sets its target target at $0.434 in the coming weeks.
But despite this bullish setting, there is no clear direction for the wider cryptocurrency market as long as Bitcoin remains below the $100,000 level. As BTC brings a leading position to the industry as a whole, meme coins like Dogecoin are likely to follow Bitcoin’s move. Doge may gain rapidly if BTC recovers its key levels, but the continued uncertainty in the market may limit its upward potential.
DOGE tests short-term liquidity
Dogecoin has traded at $0.21 after a strong 33% rally over the past few days. The Bulls gained a slight advantage, raising the price above key resistance levels. However, in order for Doge to stay motivated, it must stay above the critical $0.20 mark, which is now short-term support.
If the Bulls successfully recovered $0.255 in the next few days, Dogecoin could see a major breakthrough, leading to a massive recovery phase. Actions above this level will confirm a bullish reversal and potentially trigger further buying pressure to send the door to higher resistance areas.
However, the market remains volatile and losing the $0.20 level may quickly reverse recent earnings. If Doge cannot hold this support, it could drop 15%, reducing the price back to lower demand areas. Traders are closely watching Bitcoin’s movement, as any major BTC sell-off could affect meme coins including Dogecoin.
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Currently, the Bulls are controlling ethics, but must continue to defend key levels to maintain the current uptrend. Decisive moves in either direction will lay the foundation for Dogecoin’s next big move.
Featured images from DALL-E, charts from TradingView
