• Dogecoin price is consolidating in a descending triangle pattern, hinting at a 50% breakout soon.
  • DOGE has slid below the support provided by the 50, 100, and 200 four-hour moving averages indicating a lack of buyers.
  • A breakdown of the $0.043 support level would trigger a 50% sell-off to $0.021.
  • On the flip-side, if DOGE slices through the resistance at $0.051, then a bullish scenario might come into play.

Dogecoin price shows a lack of buying activity, which has led to its 45% descent from $0.087 to $0.048. In doing so, DOGE has flipped significant demand barriers into supply barriers. Therefore, upswings must have more oomph to slice through these levels.

Dogecoin price eyes a lower low

Dogecoin price action since February 7 has resulted in a lower high due to aggressive sellers. Each lower high bounced off a stable support barrier at $0.043. By connecting these lower highs and the horizontal support barrier, a descending triangle pattern forms.

The technical formation forecasts a 50% downswing, which is the distance between the swing high and the flat demand level, added to the breakout point at $0.043. This target puts DOGE at $0.021.

Adding credence to this bearish outlook is DOGE’s move under the 50, 100, and 200 four-hour moving averages (MA), which deter any upside movement. Hence, a spike in selling pressure leading to a 4-hour candlestick close below the flat support level at $0.043 will confirm a bearish breakout. In this case, Dogecoin price will head towards the $0.021 level.

DOGE/USDT 4-hour chart

DOGE/USDT 4-hour chart

On the other hand, if Dogecoin price manages a four-hour candlestick close above $0.051, it will invalidate the bearish thesis. In such a case, DOGE could surge 50% to hit a target of $0.076. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

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