DOGE Technical Analysis: Broken Trendline Warns Dogecoin Crash

The DOGE price action shows a retest phase of the broken support trendline within a range, reflecting a growing bearish influence. However, the possibility of a morning star-led bull cycle rising above the broken trendline to reach $0.067 warns Dogecoin sellers. So, should you avoid booking profits this early?

Key Points:

Source - TradingView

DOGE Technical Analysis

As mentioned in our previous analysis, the increased bearish influence led to a breakout of a rising support trendline. The breakout rally forms a Doji at the bottom support of $0.057 and teases a morning star to restart the bull cycle.

Currently, the daily candle shows a 0.35% jump, but the higher price rejection from the broken trendline warns of a post-retest reversal. However, the spike in trading volume makes a strong bull cycle possible as the buying pressure increases.

If the selling pressure increases, the Dogecoin market price will drop to $0.057, teasing a breakout rally to $0.052.

Conversely, if the bullish momentum increases, a reversal will dump the DOGE prices to $0.065. In such a case, traders can expect an extension of a sideways trend within the range.

Technical Indicators

The RSI indicator shows a recovery trend in the nearly oversold zone as it approaches the halfway and 14-day average lines. Moreover, the fast and slow lines signal a bearish crossover, with the bearish histograms gaining momentum.

Therefore, the DOGE technical analysis suggests that traders can find a selling opportunity shortly.

Resistance Levels - $0.065 and $0.075

Support Levels - $0.057 and $0.052