Dogecoin (DOGE) poised to break out of a descending wedge pattern, but upside potential remains limitedWhile Dogecoin (DOGE) has been fluctuating within a descending wedge pattern in recent days, and might break out soon, market analysis suggests that a significant price surge after the breakout is unlikely.Weak momentum, ADX indicator reveals waning uptrendDogecoin's momentum has clearly weakened, with the Average Directional Index (ADX) indicating a fading uptrend, currently at a very weak level
Dogecoin (DOGE) poised to break out of a descending wedge pattern, but upside potential remains limited
While Dogecoin (DOGE) has been fluctuating within a descending wedge pattern in recent days, and might break out soon, market analysis suggests that a significant price surge after the breakout is unlikely.
Weak momentum, ADX indicator reveals waning uptrend
Dogecoin's momentum has clearly weakened, with the Average Directional Index (ADX) indicating a fading uptrend, currently at a very weak level. This means that even if it breaks out of the descending wedge pattern, it may struggle to sustain a strong rally.
Negative MVRV ratio, short-term holders may sell
The MVRV ratio currently stands at -20%, which implies that short-term holders are in profit while long-term holders are not. This is often seen as a bearish signal, as short-term holders are more likely to sell to lock in profits, putting downward pressure on the Dogecoin price.
Dogecoin price forecast: Potential consolidation between $0.094 and $0.118 in the short-term
While breaking out of a descending wedge pattern typically translates to a 60% rebound, given the weak momentum and bearish sentiment, Dogecoin may find it challenging to break through the critical resistance level of $0.118. In the foreseeable future, Dogecoin could consolidate within the range of $0.094 to $0.118.
If $0.118 is breached, $0.130 becomes a critical support level
If Dogecoin successfully breaks through $0.118 and establishes $0.130 as support, it could regain bullish momentum, pushing the price further upwards.
Conclusion
Dogecoin is currently trading within a descending wedge pattern, with a potential breakout, but a significant rally may prove difficult in the short term. While a breakout from a descending wedge typically indicates a 60% rebound, weak momentum and bearish sentiment could limit its upside potential. In the foreseeable future, Dogecoin might consolidate between $0.094 and $0.118.
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