Dogecoin (CRYPTO: DOGE) saw a major price downturn recently, but recent charts give hope for a bullish reversal.
What Happened: According to a CoinGape analysis, since Dogecoin hit its monthly high of $0.35, its price fell by about 20% but its price action over the last two weeks has drawn a bullish falling wedge on the daily candle chart.
The report explains that “falling wedges are usually 80% of the time bullish as a breakout to the upside is needed to activate the pattern.”
In order for Dogecoin’s price to charge towards $0.30, bulls have to break the top trendline of the falling wedge, where they’ll be met by resistance at $0.306.
If this resistance were to be broken, DOGE could reach the mid $0.30s. Another bullish sign for Dogecoin is that the Stochastic RSI indicates that the coin’s price has been oversold for the last few days.
According to the analysis, Bitcoin’s performance over the last two weeks gives hope that a larger price move is coming soon. If Bitcoin breaks to the downside, then Dogecoin will likely do the same — since Bitcoin usually acts as the trendsetter in this market.
Price Action: According to CoinMarketCap data, Dogecoin is currently trading at $0.2704 after losing exactly 4.13% of its value over the 24 hours to press time.
Photo: Glory Cycles via Flickr
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