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Dogecoin is currently the largest altcoin in terms of market value in its field, but recently it has seen a decrease in Elon Musk’s interest. The meme coin king, who gained popularity during Twitter’s sales process, has faced excessive selling due to the postponement of payment integration. Now, investors are focusing on technical analysis as they do not feel the support of the mischievous billionaire as much as they used to.
Dogecoin (DOGE) Chart Analysis
In the midst of the recent recovery in the crypto market, the Dogecoin price has managed to challenge the upper resistance trend line of the wedge formation. Theoretically, this formation is a continuation pattern of a downtrend that offers a resting period for sellers to regain strength. As long as the two trend lines of this formation remain intact, it is likely that the asset price will bounce between them and extend a minor recovery.
At the time of writing, the DOGE price is trading at $0.0723 with a rejection candle near the upper trend line. A potential reversal from this general resistance could pull the price back towards a lower trend line. However, a breakdown below the support trend line is needed to complete this pattern, which could potentially push prices towards the $0.053 region.
DOGE Price Target
If the bullish sentiment in the market does not continue, a drop to $0.053 is likely. However, both the recent developments in Spot Bitcoin ETF applications and the positive news in the XRP case suggest that upward targets could be tested. The risk appetite in altcoins seems to be increasing even more as the SEC’s grip relatively weakens. The possibility of the CFTC obtaining authorization from Congress for a larger part of cryptocurrencies is also among the potential price catalysts in the coming weeks/months.
In the best-case scenario, the Dogecoin price could reach $0.083 by surpassing the upper trend line. The RSI supports the bullish sentiment. The upward slope of the 200-day EMA confirms the increasing demand among investors. Considering the positive macro data at the moment, we could see a higher price in the coming week.
However, investors should not forget that cryptocurrency is filled with surprises. The environment that caused excessive selling in the first half of June turned the opposite in the second half. Even a novice investor who is new to cryptocurrencies can easily grasp the high level of risk by looking at the past 45 days.
