Dogecoin's price has broken below a bearish pennant pattern on the 4-hour chart, signaling a potential decline towards the $0.108 support level. This breakdown, highlighted by analyst Trader Tardigrade, suggests a continuation of the bearish trend unless DOGE can reclaim the $0.126 level. Traders are advised to watch the $0.120 resistance closely, as a close above this could invalidate the bearish setup.
Despite short-term bearish signals, the long-term outlook for Dogecoin remains optimistic. Historical patterns on the weekly chart indicate potential for a significant rally, with past cycles showing rounded bottoms followed by exponential gains. For this bullish scenario to unfold, DOGE must maintain support above $0.070. Additionally, the DOGE/BTC pair shows potential for outperformance, with a pattern suggesting another pump could be forming.
Momentum indicators, such as the RSI, offer hope for a short-term bounce. A breakout in RSI on the 4-hour chart suggests a shift in momentum, with the RSI rising above 45. If Dogecoin can hold support near $0.118 and reclaim $0.126, a recovery may be possible.
Dogecoin Faces Bearish Pressure After Pennant Breakdown
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