Dogecoin’s close above $ 0.280 was a much-needed change in the market as the alt managed to regain levels that were lost on the back of the breakout of a descending triangle. However, the bearish response was swift and it looked like DOGE was ready to give up battle ground.
Some areas could provide defensive measures, but the threat of another sell-off was great. At the time of this writing, Dogecoin was trading at $ 0.297 and ranked 7th in the crypto rankings.
Dogecoin 4-hour chart
DOGE’s widening wedge pattern emerged after its rally and subsequent pullback to a $ 0.228- $ 0.238 support zone. At press time, DOGE tested the lower trend line and threatened to break south of the pattern, but the bulls were opposed to the hourly chart and the 50-hour 4-hour SMA (yellow).
If buyers fail to reverse the market in their favor, DOGE would return to $ 0.280, from where the market would remain vulnerable to a sharp decline. In the worst case, DOGE would record another 15% drop to its $ 0.228- $ 0.238 support area. To negate this result, buyers would have to target a close above the August 12 high of $ 0.294.
There were multiple warning signs scattered across the DOGE indicators, but the bulls seemed to be keeping their heads above water. The RSI lined up in a bearish divergence, but had not yet fully fallen into bearish territory. Similarly, MACD and Awesome Oscillator recorded a series of red bars, but managed to stay above their respective half lines.
A clear sell signal would present itself once the RSI falls below 40, while the MACD and AO fall below their breakeven points as a result of the selling pressure.
Dogecoin threatened to deny most of its progress made last week if prices break south from the widening gap. In such a case, traders can wait for a breakdown confirmation and short DOGE once prices retest $ 0.280 and do not close higher.
This is a machine translation of our English version.
Your opinion is important to us!