Can Dogecoin Reach $0.85? Bullish Setup Hints At Potential For Advance

Christian Encila

1 year ago

3 mins read

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Dogecoin (DOGE) has recently captured attention due to its price’s downward trajectory. While the current decline in DOGE’s price might raise concerns, astute traders are discerning a potential opportunity amidst the turmoil.

As reported by CoinGecko, the DOGE price stands at $0.074288, reflecting a 3.6% drop in the past 24 hours and a 5.2% decline over the past seven days. These figures emphasize the coin’s recent volatility and the challenges that DOGE holders and traders face.

However, beneath the surface of these numbers lies an intriguing pattern that might hold the key to future price action.

Source: Coingecko

Dogecoin Potential For Bullish Continuation

Despite the recent price woes, technical analysis unveils a fascinating pattern on DOGE’s four-hour time frame chart – the bullish flag pattern. This pattern, often observed as a continuation signal, consists of a sharp downward slide resembling a flagpole and a consolidation phase marked by parallel trendlines.

In DOGE’s case, this pattern is at play, suggesting that the ongoing price decline is a precursor to a bullish resurgence.

According to a recent report, the battle between support and resistance levels is evident. DOGE’s price movements within the channel structure reflect this struggle vividly. The support trendline has demonstrated its strength with three discernible bounces, underscoring its importance as a potential rebound point.

DOGE market cap reached $10.25 billion today. Chart: TradingView.com

Conversely, the overhead resistance has twice thwarted upward price movements, showcasing its influence over trader decisions. These dynamics highlight these levels’ pivotal role in determining potential trend shifts.

Historically, flag patterns indicate a temporary pause following a notable price movement, often paving the way for continuing the prior trend. If DOGE’s buyers successfully breach the resistance barrier, an estimated 8% price surge could enable the coin to break through the psychological barrier at $0.085.

Divergent Perspectives

Amid the optimism surrounding the flag pattern, caution is unveiled in a separate report. The report’s viewpoint suggests a bearish outlook for DOGE, grounded in the coin’s struggles to overcome the resistance of a falling wedge pattern.

$DOGE has performed its new Weekly Close below the pattern resistance

As a result, #DOGE is potentially set up for a rejection and intra-pattern consolidation

Worst case scenario, DOGE could retrace to the very bottom of the market structure#Crypto #Dogecoin https://t.co/K8KUgizgNw pic.twitter.com/sVbLgHlNzd

— Rekt Capital (@rektcapital) July 31, 2023

DOGE might experience a retracement in a more pessimistic scenario, descending to the wedge’s diagonal support at around $0.055. This divergence in opinions underscores the inherent unpredictability of the cryptocurrency landscape.

While the downward trajectory of DOGE’s price might trigger concern, it also beckons an opportunity for those who analyze its underlying patterns. The emergence of the flag pattern amidst the price decline hints at the potential for a bullish continuation. Yet, analysts’ differing perspectives serve as a reminder of the intricate nature of cryptocurrency markets.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Reddit

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.