The daily chart shows the Dogecoin price continues to grind broadly sideways in a narrowing pennant formation.
Forming the lower edge of the formations a trend line at $0.2090. It was this uptrend that provided the catalyst for yesterday’s bounce. Just above the trend line, the 200 EMA at $0.2275 lends its weight to the support. If the price fails to hold above the 200 EMA and the trend line, it will signal an end to the 2021 bull market and likely lead to significant long liquidation.
However, for now, the trend is intact. And as long as that stays the case, DOGE has a chance to recover. The first obstacle is the 100 EMA at $0.2632, followed by the 50-day at $0.2729. Successful clearance of the two moving averages should lead to another attempt at trend resistance, now seen at $0.3183. And above $0.3183, the outlook turns incredibly bullish. However, the early signs are that the downside will prevail. Although, DOGE has a habit of surprising.
Forming the lower edge of the formations a trend line at $0.2090. It was this uptrend that provided the catalyst for yesterday’s bounce. Just above the trend line, the 200 EMA at $0.2275 lends its weight to the support. If the price fails to hold above the 200 EMA and the trend line, it will signal an end to the 2021 bull market and likely lead to significant long liquidation.
However, for now, the trend is intact. And as long as that stays the case, DOGE has a chance to recover. The first obstacle is the 100 EMA at $0.2632, followed by the 50-day at $0.2729. Successful clearance of the two moving averages should lead to another attempt at trend resistance, now seen at $0.3183. And above $0.3183, the outlook turns incredibly bullish. However, the early signs are that the downside will prevail. Although, DOGE has a habit of surprising.
