Dogecoin Price Prediction: DOGE Downtrend Catalyzed by This Bearish Technical Pattern
- Dogecoin price renews the downtrend targeting an 18% drop to $0.18.
- The transaction history model reveals the presence of a robust seller congestion zone toward $0.25.
- Massive support between $0.189 and $0.196 may help DOGE avoid the plunge to $0.18.
Dogecoin price has, over the last two weeks, consolidated around $0.24. Attempts to break above the resistance at $0.3 have been futile, with DOGE correcting beneath a descending trendline. A break under the crucial support at $0.24 has opened the door for losses targeting $0.18.
Dogecoin price confirms descending triangle breakdown
At the time of writing, the meme coin teeters at $0.216. A descending triangle pattern breakdown adds credence to the bearish outlook. Before the downtrend started, the price moved into a tighter range, shining a light on a harrowing battle between the bulls and the bears.
The descending triangle is a continuation pattern in technical analysis. Traders confirm the formation of a triangle following at least five touches of the support (x-axis) and resistance (hypotenuse).
The descending trend line shows a bearish building momentum while the x-axis highlights support that sellers initially struggle to shatter. Nonetheless, bears have cracked the crucial support, paving the way for an 18% drop to $0.18.
Meanwhile, support is envisaged at $0.2 and may invalidate the downswing. However, if Dogecoin price closes the day below this level, massive declines will follow. As illustrated, triangles have exact breakout targets equal to the distance between the highest to the lowest points.
DOGE/USD four-hour chart
The same downtrend seems to have been validated by the IOMAP on-chain model by IntoTheBlock. This metric tracks the number of addresses that have bought DOGE and groups in bands accompanies by the volume pulled. These bands shine a light on resistance and support areas, which traders can use to make decisions in the market.
Massive hurdles lie ahead of Dogecoin as observed on the model, but the robust one runs from $0.24 to $0.248. Here, nearly 63,000 addresses previously scooped up 5.64 billion DOGE. Bulls are bound to find a challenging time cracking through this zone, a move that may invalidate recovery toward $0.3.
Dogecoin IOMAP model
Looking at the other side of the fence
The same IOMAP metric shows robust support between $0.189 and $0.196. Here, around 10,000 addresses previously purchased 5.46 billion DOGE. As long as this buyer congestion zone remains intact, the downward call to $0.18 will not extend further and perhaps give way for a massive recovery.