Dogecoin (DOGE) Price Retreats 25% in 3-Day Slide: Impending Reversal in Motion?
The DOGE price faced a substantial decline over the past week, effectively reversing a prior breakout from a long-standing descending resistance line.
The nullification of the breakout serves as a potent bearish signal that may usher in further downward movement.
Maintaining the price above the $0.060 level is pivotal to potentially retaining a rebound. The recent passing of the iconic Dogecoin mascot "Balltze" due to leukemia adds a somber note to the landscape.
Dogecoin Price Retracts Post Breakout Failure
The meme-inspired crypto has been entrenched beneath a descending resistance line since May 2021. Amid this descent, DOGE plummeted to a low of $0.049 in June 2022 before rebounding. This resurgence confirmed the $0.060 level as a support.
The next significant resistance zone resides at $0.10, a surge of 60% from the present valuation.
The weekly Relative Strength Index (RSI) underscores a bearish tenor. An RSI reading above 50 in tandem with an upward trend signifies an advantageous position for bulls, but below 50, the reverse holds true.
DOGE Outlook
The daily outlook portends a bearish trajectory. This materialized due to DOGE's exit from an ascending parallel channel on August 15.
This departure implies that the prior surge was a corrective phase, catalyzing a downturn, resulting in a 25% crash.
Dogecoin is presently trading above the $0.060 horizontal support level. A potential double-bottom pattern relative to June's price may have formed, indicating a bullish pattern. However, corroborative indicators for a bullish reversal are absent.
Looking Ahead: Consequently, the forthcoming DOGE price projection hinges on whether Dogecoin will plunge below $0.060 or stage a breakout from the resistance line. A breakout could pave the way for a 60% upswing toward the subsequent resistance at $0.10.
