- Dogecoin price has suffered a six-week decline as the bears continue to take control.
- DOGE appears ready for a rebound, as indicated by a buy signal from a technical indicator.
- The prevailing chart pattern suggests that Dogecoin is prepared for a 20% rally.
Dogecoin price has been trapped below a sharply declining resistance trendline for over a month. DOGE appears to be reversing the period of underperformance and is aiming for a 20% rebound.
Dogecoin price suggests cops are taking power
Dogecoin price has fallen 57% since the June 2 high and has been in a downward trend since then. The DOGE bulls have tried to raise prices against the overwhelming distribution of sellers in preparation for a rebound.
On the daily chart, the Dogecoin price seems to have been consolidating within a descending parallel channel since June 25th. DOGE appears poised for a breakout above the prevailing chart pattern.
Dogecoin price is approaching the upper trendline of the parallel channel, supported by the buy signal from the Momentum Reversal Indicator (MRI) in the previous daily candle.
A prospective target is measured by drawing another parallel channel over the current pattern. The prevailing trend is pointing to a 20% upward move and marks the upper bound of the upper trendline of the parallel channel up towards $ 0.23, which coincides with the 23.6% Fibonacci expansion level.
DOGE / USDT daily chart
Speculators should note that subsequent price action must go up to confirm a possible rally.
Should the Dogecoin price secure the above goal as support, the DOGE bulls could expect the dog coin to mark the 38.2% Fibonacci expansion level at $ 0.27, which is the 50-day Simple Moving Average ( SMA). This level would serve as the next obstacle to the token suggested by the resistance line of the MRT.
The Dogecoin price will find ample support from the 200-day SMA should DOGE bears take the lead. If the bullish scenario is invalidated, the dog-themed coin will again test the parallel channel lower bound of $ 0.16, the June 22nd low.
Investors should note that with increasing selling pressure, Dogecoin could still run the risk of continuing its bearish price trend in consolidation.