- DOGE coin traveling in a falling parallel channel pattern in the daily time frame
- The DOGE/BTC pair was trading at 0.000006756 BTC with a loss of 1.53%
- The 24 hr trading volume in DOGE is $1.27 Billion.
The DOGE coin, after embedding new dreams among the market participants after showing a 95% recovery from the previous fall, the price struggles to cross the $0.29 resistance level, and now it’s been traveling in a sideways manner for the past few ways, showing multiple Doji-type candles. However, after showing strong rejection from this resistance level, the chart shows a picture of a falling parallel channel pattern which could provide a good opportunity for short position traders.
Regarding the EMA’s, the DOGE coin is moving below the critical EMA’s 20, 50, 100, indicating a bearish trend. However, the 200 EMA still stands as the last line of defense for DOGE.
The RSI(BEARISH) value is at 41, indicating a bearish sentiment in the market.
The Descending Triangle In 4hr Time Frame Could Trigger Another Fall In The DOGE Coin price
The DOGE coin shows a formation of descending triangle pattern in the 4hr time frame. This pattern could finally break the small consolidation going on in dogecoin for the past few days. Thus if the price gives a breakdown from this pattern, it will provide a good confirmation for a reversal trade of the parallel channel pattern in the daily time frame.
The MACD indicator (BEARISH) shows both the MACD and the signal line moving below the neutral zone(0.00), currently indicating bearish sentiment. However, both the lines are constantly crossing each other and moving sideways, respecting the above pattern. In addition, The histogram also shows small faded green and red bars indicating an unclear momentum.
Conclusion: From the technical perspective, the overall trend for the DOGE coin is bearish and following a falling parallel channel in the daily time frame. Traders can grab an excellent shorting opportunity once the descending triangle pattern gives a breakdown, which is a good trigger for a reversal from the parallel channel pattern..
Support– $0.226, $0.161
Resistance– $0.29