DOGE Price Forecast

However, the Dogecoin price gave the bulls a glimmer of hope yesterday. DOGE jumped 6%, clearing an influential level of resistance. But by the end of the day, the coin had erased the gains, finishing in the red. As a result, an ominous chart pattern has emerged, threatening to dash the hopes of a recovery.

The daily chart shows that following Mays $73.90 high, the price has been trending broadly lower. This formed a descending trendline, currently seen at $0.2890.

On Thursday, when the Dogecoin price reversed after clearing the trend, it left a bearish ‘shooting star candlestick. This happens when the price rallies above the previous day’s high but ends the candle near the low. This is considered a negative development, suggesting and the bears have taken back control of the price.

However, for the time being, DOGE is still above the trendline and, on that basis, still has a chance to rally. Furthermore, if the price holds above $0.2890 today, it would reinforce the breakout and possibly catalyst for an extension to the August high of $0.3526.

On the other hand, if DOGE finishes today below $0.2890, it would indicate the breakout has failed. This would likely lead to the price sliding to the 100-day moving average at $0.2607. And if that fails, the 200 DMA at $0.2246 should follow. A long term uptrend at $0.2100 assists the 200 DMA to provide robust confluent support approaching $0.2000.

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