Dogecoin nears a potential wedge breakout rally to reclaim $0.20. However, a channel breakdown risk warns massive crash.
As Bitcoin fluctuates near the $83,000 mark, Dogecoin is aiming for a bullish comeback. Trading at $0.1736, Dogecoin holds a market cap of $25.78 billion.
Being the biggest meme coin in the market, the intraday recovery is hinting at a breakout rally in Dogecoin. Will this drive the DOGE prices back above $0.40? Let’s find out.
DOGE Price Analysis
In the daily chart, the Dogecoin price exchange showcases a falling wedge pattern holding the price trend. The downfall highlights the growing bearish influence of the meme coin.
However, the short-term recovery from the support trendline is now challenging the overhead trendline. This hints at a potential breakout rally in Dogecoin.
Currently, Dogecoin trades at $0.1734 with an intraday recovery of 3.12%. This undermines the previous bearish candle of a 4.43% drop.
Dogecoin Technicals and Key Price Targets
Supporting the chances of a bullish breakout, the MACD and signal lines are giving a positive crossover to reclaim the surface in a positive zone. However, the declining trend in the exponential moving average lines due to the prevailing downfall is leading to multiple negative crossovers.
Following the recent death cross, the 100 and 200 EMA lines are teasing another negative crossover. Thus, the average lines are triggering a sell signal for Dogecoin.
Based on the Fibonacci levels, the breakout rally could retest the 78.60% level at $0.3870. On the flip side, the strong support for Dogecoin remains the $0.10 psychological support.
Analyst Warns Potential Crash in Dogecoin
Ali Martinez, a cryptoanalyst, signals a crucial crossroads for Dogecoin. As per the analyst, the meme coin is facing a crucial test at the support trend line of a rising channel battle.
On the weekly chart, the breakdown of the channel will likely test the $0.01561 mark. However, a bullish comeback will likely result in a new swing high at $0.5695.
Rising Anticipation Drives Dogecoin Open Interest
As Dogecoin stands at a crossroads, the participation of high leveraged traders is gradually increasing. The open interest has risen by 2.28%, to reach $1.49B. However, the long-to-short ratio remains neutral at $0.994.
Furthermore, the cyclical OI-weighted funding rate is positive at 0.0032%, despite the positive figures in the derivatives market. The liquidations are signalling a massive exit of whales. Over the past 24 hours, out of $6.39B worth of liquidation, long players have lost $5.02B.
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