In an interesting turn of events, Dogecoin is starting to poke out of a macro falling wedge trendline that has constrained its price movement for the past two weeks. Notably, Dogecoin, which recently broke below the trendline, now finds itself peaking back up after a recent price increase to $0.11 in the past 24 hours.
One notable observer of this development is crypto analyst Kevin, who has been closely monitoring Dogecoin’s price behavior along this trendline. Kevin took to social media platform X to share his insights, highlighting the significance of Dogecoin’s recovery and its potential to rise even further if the breakout above the trendline holds.
Dogecoin Pokes Above Macro Falling Wedge Trendline Again
Dogecoin’s price action has been full of back and forths since the middle of September. In a surprising move, many cryptocurrencies started to witness an influx of funds in September, and Dogecoin wasn’t left out. This surge in investment allowed the popular meme coin to embark on a strong upward rally, with its price surging past the $0.13 mark on September 29 for the first time in two months.
This impressive rally enabled Dogecoin to break out of the upper boundary of a multi-month falling wedge, a technical pattern typically associated with bullish reversals after prolonged downtrends.
However, the breakout proved to be short-lived. As October began, the market witnessed a broad correction, and Dogecoin quickly gave up most of its September gains. By October 3, the meme coin had retraced back below $0.105, which caused it to break below the trendline again.
Despite this correction, Dogecoin’s price has shown a slight recovery in the past 24 hours and is now trading around $0.11. This subtle increase has reignited hopes for a potential resumption of the bullish rally as the meme coin once again attempts to breach the upper trendline of the falling wedge pattern.
As analyst Kevin noted, this breakout retest is coming in less than 48 hours after it broke below the trendline. He emphasized that such a quick retest of the trendline improves the likelihood of a temporary correction rather than the start of a deeper bearish trend.
#Dogecoin is now peaking its head back above the macro falling wedge trend line after falling through it less then 48 hours ago. I stated that if we can recover within that time period that the chances of this being a bullish back test increase greatly rather than the bearish… pic.twitter.com/4JiMxDINdl
— Kevin (@Kev_Capital_TA) October 4, 2024
What’s Next For Dogecoin?
At the time of writing, Dogecoin is trading at $0.1094 and is up by 1% in 24 hours. Whether Dogecoin finally breaks out of the multi-month falling wedge or reverses will be determined in the next 24 hours or so. For a bullish scenario to fully unfold, Dogecoin bulls need to demonstrate further progress to the upside and break significantly above the upper boundary of the wedge.
A significant break above the trendline could cause Dogecoin to revisit $0.13 very quickly. The second option is a reversal to test the bottom trendline support at $0.085.
Featured image from CNN, chart from TradingView
