In recent weeks, Dogecoin (DOGE), the leading meme cryptocurrency, has generated buzz due to the formation of a bullish falling wedge pattern on its price chart.Since hitting its yearly high of $0.2288 in early March, Dogecoin has declined by over 62%, reaching a low of $0.8893 in early September, where the downtrend appears to have halted. More importantly, throughout this decline, the price has formed a bullish wedge pattern, establishing a dynamic range with key resistance and support levels.There were two failed breakout attempts in May and July. However, this month, Dogecoin made another attempt to break out of the pattern, and this time it appears poised for a potential breakout.
However, things didn’t go as planned for DOGE, as its move toward dynamic support was met with rejection, leading to a price drop of over 3.2% for the meme coin.
Two Perspectives, One DOGE
On one hand, it’s not entirely negative that this key level wasn’t breached on the first attempt. After all, it was the sellers who chose to offload their DOGE holdings at this price point. The decline wasn’t severe, and in fact, this pullback helps reinforce the current pattern.
On the other hand, sellers remain present, and now it’s up to Dogecoin—or more specifically, DOGE bulls—to demonstrate stronger resolve in breaking out of this structure. If the right response to the resistance emerges, Dogecoin could finally treat its enthusiasts to a surge of green candles.