Dogecoin Caught In Compression: Descending Triangle Warns Of Potential Collapse 🐶
Dogecoin (DOGE) is on the brink as it trades within a descending triangle pattern, signaling growing bearish pressure. Market analyst Thomas Anderson notes a period of indecision indicated by low volatility and narrowed price movement, suggesting an imminent breakout or breakdown. DOGE's technical indicators, including a 200-period moving average applying dynamic resistance, hint at a potential collapse if buyers fail to protect crucial levels.
Anderson highlights that DOGE is consolidating within this triangle on the M30 timeframe, with price approaching a critical resistance at $0.19998. The ascending resistance aligns with the triangle's descending trendline and is bolstered by the 200 MA, creating a challenging environment for bulls as DOGE remains confined.
The price compression near the triangle's apex signals weakening momentum as the 1-hour chart reflects further consolidation. This setup occasionally leads to an explosive move. An upward breakout above $0.19998 could trigger a brief bullish phase, with higher targets possible if increased volume supports it. Nevertheless, failing to break through may reinforce the bearish trend, ushering in a retracement towards lower support at $0.19010, a crucial level for buyers.
Source: www.newsbtc.com ↗
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