Altcoin Analysis of Dogecoin (DOGE): Struggling Under Long-Term Resistance
Dogecoin (DOGE) Faces Long-Term Resistance
In this altcoin analysis, we explore how Dogecoin (DOGE) has faced significant resistance recently. Following its latest attempt to break above the upper line of a falling wedge pattern, selling pressure has pushed the price below its 20-day exponential moving average (EMA). Buying momentum seems to be waning, suggesting continued movement within a downward channel.
Dogecoin Sellers Prevent Rally
Analysis of DOGE's one-day chart illustrates its ongoing trade within a falling wedge pattern since March. This wedge consists of two downward-sloping trend lines, with the upper line acting as a critical resistance level. Historically, this pattern is regarded as potentially bullish, but recent activities indicate otherwise.
- Inability to maintain momentum above resistance creates a bearish bias.
- Current readings reveal dominance of selling activity, underscoring a lack of buyer support.
- Indicators such as DOGE’s Elder-Ray Index show a -0.0032 value, highlighting seller control.
Market Outlook for Dogecoin
Looking ahead, if selling pressure intensifies, DOGE may retest the August 5 low of $0.08. On the contrary, an uptick in demand might help DOGE to surge above its 20-day EMA, aiming at $0.11, eventually targeting $0.13.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.