Dogecoin (DOGE) looks ready to extend its rebound despite the current cryptocurrency bear market.
79% chance of DOGE extending their rebound
DOGE’s price seems to paint a bottom like TOP (bump-and-run-reverse) from May 11, technical pattern showing long trend reversals in bear market. There are three successful steps: Lead i, bump and Run.
The phrase Lead i The price sees consolidation within a narrow, lateral range, showing a temporary biased conflict among investors.
Then comes the step bumpduring which the price falls and recovers sharply, leading to a breakout in the price, defined by the stage Run.
Dogecoin seems to be in the phase of it bump while looking at a break above the falling trendline resistance BAR. Say Dogecoin exceeds the price cap. Then, as the rule of technical analysis requires, it would rise back to the basic level BAR.
This pushes the price of DOGE on its way to $ 0.0941, up more than 20% from the June 27 price. In particular, the target is upside down at the same time as the 50-week exponential moving average of the signal (50-week EMA; the blue line in the chart below).
According to a report from veteran investor Thomas Bulkowski, the TOP fund hit its profit target 79% of the time. Significantly, the cut-off phase of the pattern typically averages up to over 55%, which means that DOGE still has the potential to reach $ 0.123 in the cards.
DOGE price falling out?
Raising Dogecoin to $ 0.0941 may not allow it to escape the downturn due to many technical and fundamental factors.
Technically, the DOGE price is in danger of hitting a bullish trap even though the trend is up (almost 60% has already come together in the last nine days). In particular, the bearish trend of the coin is emerging due to a rising wedge pattern on their lower time frame charts.
Specifically, DOGE was promoted within a defined range by two ascending and contracting trend lines, creating an ascending wedge.
This technical arrangement usually results in a bearish reversal, asserted when prices break below the wedge trend.
In this case, the price can fall to the maximum distance between the upper and lower trend lines of the wedge.
The $ 0.07-0.08 range is $ 0.07-0.08 the potential deduction points of the raised wedge of DOGE. So the signal could fall towards the $ 0.05- $ 0.06 zone if the breakout plays a wedge out as expected, down 15% -25% from current price levels.
Read also: The bear market of 2022 was the worst ever – Glassnode
Key elements, including Federal Reserve rate increases and a $ 9 trillion balance sheet reduction, support the underlying technical outlook in the short to medium term.
The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. All investments and trades involve risk. You should do your own research before making a decision.