Dogecoin [DOGE] Price Slowly Declines Within Trading Range
Dogecoin traded in a descending triangle last week.
A Descending triangle is a bearish continuation pattern that increases the likelihood that the next significant move will be to the downside.
As bearish movements broke out across the market yesterday, Doge also broke below its descending triangle and entered an important range between $0.002 and $0.0023.
Price traded inside this range for three weeks prior to a spike in mid-December.
Price also held support at $0.0023 prior to a spike in mid-September that saw Dogecoin increase over 200%.
While Doge traded in the center of the range for the majority of this week, it has since started to make more bearish movements which increase the likelihood that the next significant move could be to the downside.
The last time price traded in the range, price broke below $0.002 a number of times but failed to close below on any occasion.
The last time price broke from the range was with a massive spike.
It also likely that price will break out with a huge movement this time as this is often the case when price trades within a range for a prolonged period.
As the week draws to a close, Dogecoin has started making more bearish movements with lower highs forming as seen on the 4-hour chart.
Despite drawing closer to the downside of the trend, the chances of a downside break are only slightly increased.
The breakout will still likely depend on a large movement strong enough to overcome either the $0.002 support or the $0.0023 resistance.
- Dogecoin broke below a descending triangle it had been forming last week to enter a range between $0.002 and $0.0023.
- $0.002 to $0.0023 is an important range for doge and price spent three weeks within this range prior to entering the descending triangle pattern.
- Price has been moving towards the lower end of the range in recent price action which slightly increases the chance of a bearish break.
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