Dogecoin Price Faces Challenges in Achieving Trend Reversal; Looking for Breakout

• The recent price activity may indicate a shift in the underlying trend structure.
• A breakout above $0.08101 could signify a trend change.
• A price target of $0.16520 is established based on the Descending Channel Pattern Range.

Since approximately mid-February 2022, the price of the well-known cryptocurrency DOGE/USDT has been consolidating within a limited range of $0.1420 to $0.5140. The market has shown a lack of direction, as evidenced by the extended horizontal trend observed during this period. Nevertheless, DOGE/USDT made a significant attempt to breach the resistance in late October 2022, as illustrated in the analysis chart below. The large wick candles formed at the rejection zone depicted in the chart clearly reflect the prevailing bearish sentiment.

Unfortunately, the bullish momentum was short-lived, as the bears swiftly regained dominance and formed a strong bearish Inverted Hammer pattern near the critical resistance level of $0.1420. This rejection was a significant setback for DOGE/USDT, leading to a continuation of the downward trend that has persisted since then.

Potential Trend Reversal: DOGE/USDT Transition from Lower Highs to Higher Highs

The recent price activity of DOGE/USDT may indicate a shift in the underlying trend structure. The price action of the cryptocurrency, characterized by a series of lower highs and lows, is negative. This is evident in the analysis chart below. However, there are indications that this trend may be on the verge of change. DOGE/USDT is approaching the previous Continue to Structure (CTS) level following a series of lower lows.

Additionally, the cryptocurrency experienced a significant 15% decline in a single day on June 11th, 2023, as shown in the chart above, which may indicate a reversal of the current negative outlook. This transition from lower highs to higher highs could represent a pivotal moment for DOGE/USDT.

Technical Analysis: DOGE/USDT Confined within Descending Channel Pattern, Resistance at Trend Line

Based on technical analysis, DOGE/USDT has been trading within a Descending Channel Pattern since November 7th, 2022, and is anticipated to continue this pattern until July 15th, 2023. This pattern is defined by a series of lower highs and lower lows, as illustrated in the chart below, which suggests a negative outlook.

During this period, the value of DOGE/USDT has significantly decreased, by approximately 50%. Importantly, the price has faced rejection three times at the descending trend line, indicating strong resistance. These rejections highlight considerable selling pressure and reinforce the idea that DOGE/USDT will struggle to surpass the trend line resistance.

Breakout or Continuation: The Key Levels to Understand DOGE/USDT Future Trend

For DOGE/USDT to escape its current downtrend or continue to decline, the forthcoming price movements will be critical. A breakout above $0.08101 could indicate a trend shift. A consistent pattern of higher highs and higher lows would follow such a breakout, signaling the conclusion of the lower low and lower high structure. If DOGE/USDT were to break out in this manner, it would present a significant opportunity for both buyers and sellers.

Conversely, if DOGE/USDT fails to breach the pivot level at $0.06377, the lower low and lower high structures are likely to persist. The ongoing negative trend would continue, heightening the risk of further price declines.

Projected Target and Potential Rally

The recent price activity indicates the potential for a trend reversal, with DOGE/USDT showing signs of transitioning from lower highs to higher highs. This possible turning point is supported by the cryptocurrency nearing a previous structural level and a significant drop on June 11th, 2023. Technically, DOGE/USDT remains confined within a descending channel pattern, facing substantial resistance at the trend line.

The upcoming price movements will be vital in determining the cryptocurrency’s future trend. A breakout above $0.08101 could signal a trend change, while failure to surpass the pivot level at $0.06377 would maintain the current downtrend. Should a breakout occur, DOGE/USDT could witness a considerable rally, with a projected target of $0.16520, representing a potential 100% increase from its current level.

Disclaimer: The views expressed in this chart are solely those of the author. They do not constitute any investment advice. TheNewsCrypto team encourages everyone to conduct their own research prior to investing.