Dogecoin price stuck in pennant while DOGE bears take upper hand

Dogecoin (DOGE) price action is starting to fall in favor of the bears after bulls got rejected on any further gains on October 6 at $0.29. As the pennant begins to consolidate, some bearish signs start to form and spell grim perspectives for the bulls. A break of the green ascending trend line could open up losses toward $0.19.

Dogecoin price is under bearish pressure to break the pennant to the downside

Dogecoin price action has been in a bull run with a peak on October 6, where bulls failed to break above $0.29 and the monthly R1. That rejection saw quite a lot of profit-taking in long positions and made price action in DOGE fade to the downside. Although technically still in a short-term uptrend, the longer-term downtrend looks to become a reality again for the bulls.

DOGE price rejection of $0.29,  where bulls got a very abrupt stop to the upside on October 7, made bears stream in to start taking out bulls in Dogecoin price action. The level around $0.26 not only held historical importance, but with both the 55-day and 200-day Simple Moving Averages (SMAs) working as resistance, bulls faced a threesome of refusals on their attempt to retest $0.29. To make matters even worse, the 55-day broke below the 200-day SMA and could be the start of a Death Cross, which bears love to use as a reason to go short Dogecoin.

DOGE/USD daily chart

With bears clearly in control in Dogecoin price action, expect a retest of the green ascending trend line in the coming days. A break below would first meet support at $0.19, going back to September 21, with a double floor and the S1 support level from September. A leg lower would make bears target $0.16, with the low from July 20 and the S1 support level as profit-taking points . 

In case bulls can take the upper hand in DOGE price with the help of some favorable tailwinds, expect a break back above $0.26, followed by a retest of support on that same level before bulls then charge in full force to break the red descending trend line and target $0.29 for the retest of a double-top formation.