Dogecoin Price Struggling for a Trend Reversal; Awaiting Breakout

• The recent price behavior may signal a change in the underlying trend structure.
• If the price is able to break out over $0.08101, it may signal a change in trend.
• A price objective of $0.16520 is set based on the Descending Channel Pattern Range.

Since around the middle of February 2022, the price of the popular cryptocurrency DOGE/USDT has been consolidating within a narrow band of $0.1420 to $0.5140. There has been a lack of direction in the market, as seen by the protracted horizontal trend seen throughout this time. However, DOGE/USDT made a serious effort to push through the barrier in late October 2022 as seen in the analysis chart below. The large wick candles formed at the rejection area shown in the chart clearly indicated the strong bearish sentiment.

Unfortunately, the bullish momentum didn’t last long, as the bears quickly regained control and created a powerful bearish Inverted Hammer pattern near the key resistance point of $0.1420. This denial was a major blow for DOGE/USDT, and it triggered a continuation of the downward trend that has endured ever since.

Potential Trend Reversal: DOGE/USDT Shift from Lower Highs to Higher Highs

DOGE/USDT’s recent price behavior may signal a change in the underlying trend structure. The cryptocurrency’s price action, marked by a series of lower highs and lows, is negative. This is pretty clear as seen in the analysis chart below. There are, however, signs that this trend is about to change. DOGE/USDT is getting close to the previous Continue to Structure (CTS) level after a string of lower lows. 

In addition, the cryptocurrency had a notable 15% drop in a single day on June 11th, 2023 as seen in the chart above, which might signal a reversal of the current gloomy outlook. This change from lower highs to higher highs may mark a turning point for DOGE/USDT.

Technical Analysis: DOGE/USDT Trapped in Descending Channel Pattern, Resistance at Trend Line

According to the technical analysis, DOGE/USDT has been trading within a Descending Channel Pattern since November 7th, 2022, and is expected to do so until July 15th, 2023. A sequence of lower highs and lower lows defines this pattern as seen in the chart below, which is indicative of a negative outlook. 

During this time, the value of DOGE/USDT has dropped drastically, by an estimated 50%. Notably, the price has been rejected three times by the falling trend line, which indicates strong resistance. These setbacks point to intense selling pressure, and they add weight to the notion that DOGE/USDT will have a hard time breaking above the trend line resistance.

Breakout or Continuation: The Critical Levels to Understand DOGE/USDT Future Trend

If DOGE/USDT is to break out of its present downtrend or continue to drift down, the next price moves will be decisive. If the price is able to break out over $0.08101, it may signal a change in trend. A consistent pattern of higher highs and higher lows would follow such a breakout, signaling the end of the lower low and lower high structure. If the price of DOGE/USDT were to break out in this way, it would be a fantastic opportunity for buyers and sellers.

In contrast, the lower low and lower high structures are expected to persist for DOGE/USDT if it is unable to break through the pivot level at $0.06377. The current negative trend would continue, increasing the risk of a further price decline.

Projected Target and Potential Rally

The recent price behavior suggests the possibility of a trend reversal, with DOGE/USDT showing signs of shifting from lower highs to higher highs. This potential turning point is supported by the cryptocurrency nearing a previous structural level and a notable drop on June 11th, 2023. Technically, DOGE/USDT remains trapped within a descending channel pattern, facing strong resistance at the trend line.

The next price moves will be crucial in determining the cryptocurrency’s future trend. A breakout above $0.08101 could signal a change in trend, while failure to break through the pivot level at $0.06377 would sustain the current downtrend. If a breakout occurs, DOGE/USDT could experience a significant rally, with a projected target of $0.16520, representing a potential 100% increase from its current level.

Disclaimer: The opinion expressed in this chart is solely the author’s. It does not represent any investment advice. TheNewsCrypto team encourages all to do their own research before investing.

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• Source: https://thenewscrypto.com/doge-news-dogecoin-price-struggling-for-a-trend-reversal-awaiting-breakout/