Dogecoin's rebound from the 200-day simple moving average on June 22 marked a bullish departure from the weakness that branded DOGE price action through much of May and June. The price action proceeding the bounce from the low formed a symmetrical triangle pattern level that triggered today with a 12-hour close below the triangle’s pattern lower trendline. It is a bearish development, provoking some concern about DOGE price intentions moving forward, but May’s declining trend line is the final judge.
On June 22, Dogecoin initiated a compelling rally off the 200-day SMA at a price of $0.150 with above-average trade volume and followed by a 23% gain on June 23, the largest up day since the 25% gain on May 13. The notable jump in Dogecoin volume combined with the conviction of the price rebound from the strategically important moving average pointed to prominent investor interest as big money tends to gravitate towards actionable support levels that offer great value.
The significance of the bullish bid quickly lifted DOGE price to the intersection of May’s declining trend line at a price of $0.288 with the 23.60% retracement of the May-June correction at $0.296. Since June 25, high Dogecoin coiled in a symmetrical triangle pattern level and released the rally's price compression.
As a continuation pattern, it suggested better price outcomes for the meme token, but today’s close below the triangle’s pattern lower trend line dictates a rethink of the original bullish outlook. Moreover, the bearish Death Cross pattern on the 12-hour chart warns Dogecoin investors projecting an easy path to higher prices.
The Dogecoin symmetrical triangle measured move is 21%. Based on the position of the triangle’s lower trend line today, the Dogecoin downside price target is $0.193 level, taking the meme token below May’s declining trend line currently at $0.223.
However, today’s drop could be a bear trap as the pressure of a weak crypto market, and rising enthusiasm surrounding Baby DogeCoin has put Dogecoin price on the defensive. Thus, as long as May’s declining trend line at a price of $0.223 holds, DOGE has the basis on which to initiate a convincing rebound.
If the Dogecoin fails to hold May’s declining trend line, the DOGE price could be overcome with sustained selling pressure, pressing the digital asset to test the 200-day SMA at a price of $0.166 and possibly sweep the June 22 low price of $0.152, presenting a 20% decline from the current price.
The convincing response to the 200-day SMA by Dogecoin price was lead by prominent investors. Nevertheless, the breakdown from the symmetrical triangle pattern today has the bullish outlook under pressure as $0.223 provides a solid intraday support level, making it the final word on the future outlook.
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