- Dogecoin price is on a bearish run despite gaining crucial support.
- DOGE has formed a triple bottom pattern over the past few days.
- A spike in selling pressure could lead meme-coin towards $0.20.
Dogecoin price is exhibiting a sharp downward movement, having dropped to $0.2164 support level. Increased selling pressure can push DOGE even lower despite the significant losses already incurred. It mainly depends on whether the triple bottom support level can hold.
Dogecoin price set to violate support
Dogecoin price dropped by 5.27% to hit the x-axis of a descending triangle where it has been contained since November 15. This is the third time the meme-coin has tested the $0.2164 support, creating a triple bottom pattern. However, sellers appear to have the upper hand as the 20 and 50-period exponential moving averages act as resistance barriers at $0.2250 and 0.2305.
On the 4-hour chart, Dogecoin has formed a series of red candles below the EMAs, which is indicative of a strong downtrend. The MACD and RSI are also holding at -0.002 and 35, respectively, boosting chances of a downswing continuation.
In the event of a spike in selling pressure, Dogecoin’s price could dive to $0.2057 or $0.1963.
Dogecoin (DOGE) 4-hour timeframe - Descending triangle pattern set to breakout
On the other hand, Dogecoin can shrug off sellers if it manages to survive above the $0.2164 level. Staying above such crucial support can bring buyers and drive DOGE price towards the $0.2250 or $0.2367 resistance level.
For now, it is imperative to wait for the closing of the 4-hour candle. If it concludes below $0.2164, Dogecoin can continue the downtrend.
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