Analytics
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The Dogecoin rate shows a short-term bearish mood, remaining inside the bearish pattern. Technical indicators support the possibility of a bearish breakout
As the results of the technical analysis show, the rate of the Dogecoin project coin has been growing since November 9th. On November 21, DOGE made a rising low and accelerated the pace of gains thereafter. On November 27, the price made a bullish breakout from the ascending parallel channel. Then the coin resumed growth and on December 5 reached a maximum of $0.111.
Perhaps the comments of the new CEO of Twitter, Elon Musk, who once again demonstrated his support for the meme coin, played a role. When asked if the platform would support payments in cryptocurrency, he replied: “Dogecoin to the moon.”
Read also: Dogecoin forecast for December 2022: what awaits Elon Musk’s favorite coin
However, after the bullish breakout, the growth of the coin stalled. Over the past 24 hours, the price has formed a long upper wick, which is considered a sign of bearish pressure.
In addition, the RSI is giving bearish divergence signals. The fact that this divergence appeared at the Fibo 0.382 retracement around $0.105 reinforces the bearish outlook for DOGE.
The fall of the price back inside the channel will confirm this negative scenario.
DOGE/USDT Source: TradingView
The shorter-term 4-hour chart also paints a bearish picture. Here, Dogecoin is trading inside a rising wedge pattern, which is considered a bearish pattern. This is reinforced by bearish divergence signals on the RSI.
If we see a bearish breakout, the immediate support area will come into play between $0.087 and $0.091. These are Fibo levels 0.5-0.618 correction.
However, if the entire price movement since Nov. 9 is an ABC corrective pattern, then the coin could drop to the next support at $0.060.
As a result, the forecast for Dogecoin can be considered bearish. Only a confident closing of the price above $0.105 can cancel it.
DOGE/USDT Source: TradingView
Read also:
- Bitcoin Forecast for December 2022: how much will BTC cost at the end of the year
- Whether to wait for BTC $10,000 each: bitcoin forecast from investors
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