Dogecoin Price Dips 0.3% to $0.102, Underperforming Market Rally

Dogecoin Price Dips 0.3% to $0.102, Underperforming Market Rally

In Sunday’s trading session, Dogecoin saw its price decline by 0.3% to $0.102, falling short of the broader market’s upward momentum. A series of short-bodied candles with extended wicks suggest a lack of decisive control by either buyers or sellers, pointing to continued uncertainty. This unease is mirrored in Bitcoin’s struggle to maintain its position above the $60,000 support level, raising concerns about a potential continuation of the downtrend. The key question now is whether DOGE will hold above the crucial $0.1 mark.

Dogecoin Teases Major Breakout Amid Wedge Pattern Formation

Dogecoin price has shown a sideways movement over the past two weeks, hovering around the psychological threshold of $0.1. This consolidation could signal a shift in the prevailing bearish sentiment, as the price has recently bounced off the support trendline of a falling wedge pattern.

This wedge pattern, characterized by two converging trendlines of dynamic resistance and support, typically marks a weakening bearish momentum, often culminating in a breakout above the upper resistance line.

A bullish crossover between the MACD (orange) and the signal line (blue) further underscores the resurgence of bullish momentum. Should these lines cross above the midline, it would reinforce the buyers’ control over the asset. If the wedge pattern plays out, Dogecoin’s price could see a 12% rally, targeting the resistance trendline of the wedge.

A breakout from this wedge could significantly increase buying pressure, potentially driving the price up to challenge the $0.144 resistance, with a subsequent peak at $0.22.

According to data from Coinglass, the DOGE Open Interest (OI)-Weighted Funding Rate currently stands at 0.00112. This positive rate suggests a dominance of long positions, reflecting bullish market sentiment as traders are willing to pay a premium to maintain their positions.

If this trend persists, it could bolster investor confidence, possibly fueling further gains in Dogecoin price.

However, resistance from the 20-day Exponential Moving Average and the $0.106 level could pose significant obstacles to the buyers’ efforts. With DOGE trading below key daily EMAs (20, 50, 100, and 200), the path of least resistance currently leans downward. If Dogecoin price fails to break through these overhead resistances, a bullish breakout may be delayed, opening the door for sellers to drive an extended correction down to $0.08.