Dogecoin (DOGE) Price Eyeing 103% Spike, But EMA Resistance Remains Hurdle
PATNA (CoinChapter.com) — Dogecoin price has been progressing slowly and steadily after rebounding off the upper trendline of a bullish wedge pattern. Moreover, DOGE price has formed another bullish pattern that could help the token register more gains.
Dogecoin Price Forms Bullish Setup
The DOGE USD pair has formed a bullish technical setup called the ‘Ascending Triangle.‘
Rebounding above the wedge’s trendline helped infuse confidence in the memecoin’s price action.
The pattern occurs when a horizontal resistance line connects swing highs while an ascending trendline links higher swing lows. This setup suggests increasing buying pressure as the price approaches the resistance level.
The DOGE USD pair formed a bullish setup with a 103% upside target. Source: Tradingview
The significance of this pattern lies in the potential for a breakout. A surge in trading volume as the price nears the resistance level typically confirms the likelihood of a breakout above it.
The ascending triangle formation indicates that buyers are gaining strength, and a successful breakout could lead to further upward momentum for the DOGE USD pair. Moreover, the technical setup provides a clear framework for assessing potential price movements in the near term.
In technical analysis, the pattern’s price target is calculated by measuring its height and projecting it from the breakout point. For the Dogecoin token, this calculation suggests a price target near $0.228, a spike of 103% from the current level.
EMA Trendline Resistance Proving Difficult For Bulls
Meanwhile, Dogecoin price action is facing resistance from its 200-day EMA (green) trendline, which rejected the DOGE USD pair‘s uptrend attempts.
DOGE USD daily price chart with RSI.
For Dogecoin price to continue its rally, the token would need to move above the EMA resistance before targeting the resistance near $0.122. Moreover, breaking and consolidating above the immediate resistance might help the DOGE USD pair target the resistance near $0.14.
However, if the rally fails, the DOGE price risks a drop back to the wedge’s descending trendline, which recently acted as support near $0.105.
Failure of the immediate support level could send the DOGE USD pair hurtling to the support near $0.09, which could drive traders to panic sell and compound the bearish pressure against the token.
The relative strength index for DOGE remained neutral, with a score of 54.09 on the daily charts.
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