DOGE, the largest meme coin in terms of market value, has gained momentum again following the recent rise of BTC. So, what are the expectations in the short and medium term? At the time of writing, the king of cryptocurrencies, BTC, is struggling at $27,300. The significant losses in BTC, compared to yesterday, triggered drops of over 5% in altcoins.
Dogecoin (DOGE)
The meme coin king broke out of its long-term resistance line but couldn’t sustain it. Altcoins rapidly lost value due to the negativity in Bitcoin‘s price. In fact, some cryptocurrencies even fell below their pre-rise levels.
Experts believed that the increase in BTC price would lead to a strong pullback, as in previous rallies. With a few days of delay, the expected decline occurred and BTC is returning to its starting levels of the rise. This could be the beginning of a challenging period for DOGE and other altcoins.
While the Doge price’s momentum reversed, it traded within a descending triangle formation. Readings on the daily chart indicate that the DOGE price broke out of a declining resistance trend line on September 27. This line had been holding strong for 64 days.
DOGE Price Analysis
At the time of writing, the price was just above the $0.06 support zone. The weekly RSI indicates a downward trend. Due to the declining indicator along with the rejection by the midline, selling pressure may increase at the $0.06 zone.
The 6-hour chart provides clearer bearish signals compared to the daily chart. There are two main reasons for this. First, the DOGE price is trading within a descending triangle. An descending triangle is considered a bearish formation and often leads to breakouts. Yesterday’s rejection boosted sellers’ confidence.
Secondly, the upward movement within the triangle resembles a corrective A-B-C formation. The corrective nature of the recent price increase suggests that the price will continue to fall. If the feared breakdown of the triangle occurs, DOGE investors may witness the price eroding to $0.052.
To invalidate the bearish prediction, the $0.064 zone needs to be reclaimed and maintained. However, the ongoing negativity in BTC price was undermining hopes.
