Dogecoin is among the few alternative tokens holding beyond their support floor regardless of the violent market slump since May 5. The plummet sent the meme token into a bullish pattern, awaiting a breakout.
DOGE Requires Reevaluation
Dogecoin price forms a declining wedge formation, and the alt has seen that since its ATH in May last year. The setup emerged as DOGE dropped 85% from the May high of $0.740. The southbound move created a base near $0.109 and indicated trend reversal promises.
The downside journey saw Dogecoin setting up three unique lower lows and lower highs, forming a declining wedge setup when connected with trend lines. This technical pattern predicts a 68% surge to $0.241, obtained by adding the swing levels’ distance to the breakout level.
Though the token breached the wedge’s top trend-line on April 25, it could not maintain the momentum, translating to reversals. Since the fakeout, DOGE has seen multiple breakthrough opportunities but failed each time.
The latest BTC crash impacted Dogecoin, but not as intense as other alts. DOGE dropped about 20%, coming close to testing the falling wedge’s lower trend line. Though the downtrend, Dogecoin recorded an impressive recovery. So far, it has gained 15% and seems not ready to pause.
The altcoin might retest the closest support zone at $0.087, presuming the declines persist. Buying momentum resurgence around this area might catalyze an upswing that overcomes the declining wedge. The anticipated upswing will push DOGE 68% high towards the predicted target at $0.241.
While Dogecoin’s technical indicators do not reveal solid directional bias, the social volume metric has what you should know. The index tracts social media DOGE mentions. Analysts can use it to time bottoms and tops.
Dogecoin’s social volume dropped to 1,589 from 9,122 since April 26. That means an 82% drop. Meanwhile, the trend shows market players aren’t interested in DOGE at current prices and will likely withdraw their capital, painting a pessimistic picture for the token.
What are your thoughts about Dogecoin amid the current broad market condition? You can utilize the comment section below to leave your replies.