Bitrabo Editorial
The popular meme cryptocurrency Dogecoin has experienced significant price fluctuations over the past few days, marked by high volatility. After closing September on a positive note, Dogecoin has since retraced its gains and is now hovering just above $0.10.
A recent technical assessment of Dogecoin’s price indicated that it managed to break free from a prolonged downtrend last week. However, a correction in the last two days has prompted DOGE to revisit the previously established breakout point. According to a cryptocurrency analyst, this retest is vital for Dogecoin’s outlook in the near future. Depending on whether it rebounds or drops below this point, it could significantly impact the meme coin’s value.
Dogecoin Testing the Major Falling Wedge
Crypto analyst Kevin, who is known for his detailed Dogecoin analyses on social media platform X, has shared insights regarding the current price movements of DOGE. His chart illustrates that after recently surging past $0.13, Dogecoin is now testing the upper trendline of a multi-month falling wedge that it broke out of just last week.
Kevin emphasizes that this retesting phase is a common occurrence following breakouts. A successful retest followed by a price increase can often confirm the breakout. Conversely, if the price falls below the trendline, it could indicate that Dogecoin remains trapped in its long-standing downtrend, which is contrary to what many investors were anticipating. Such a scenario could lead to further declines, possibly bringing DOGE down to as low as $0.085 or even lower in the approaching weeks.
#Dogecoin is currently back testing the macro falling wedge it broke out of a week ago which is technically a bullish back test and should occur when these patterns play out. If #DOGE loses this area then big trouble awaits. We need to hold this zone for this 6 month pattern to… pic.twitter.com/kYTWuQTwNH
— Kevin (@Kev_Capital_TA) October 1, 2024
Thus, the range between $0.11 and $0.108 is crucial for Dogecoin supporters to defend. As per Kevin’s analysis, it is essential for Dogecoin “to hold this zone for this 6-month pattern to not fail.”
What Lies Ahead for DOGE?
Currently, Dogecoin is trading at $0.1085, reflecting a decline of 8.5% in the last 24 hours. If the bulls can sustain the price above this vital range in the coming days, it could validate the recent breakout and potentially open the door for further gains in the weeks to follow.
Notably, Dogecoin’s recent price drop is part of a larger trend affecting various cryptocurrencies. The anticipated price increase associated with “Uptober” on October 1 has shifted to a general decline across the cryptocurrency market.