Key Takeaways:
- Dogecoin price is moving inside a bearish technical pattern.
- Meanwhile, the DOGE price started falling as the hype around X inclusion faded.
- However, the DOGE whale movement continued.
NEW DELHI (CoinChapter.com) — Dogecoin (DOGE) price has rallied 130% so far in 2023, its gains partly led by speculations that Elon Musk’s X (formerly known as Twitter) will add the token payment option on its platform.
However, recent price data shows that the Elon Musk hype is dying. Notably, the DOGE price has dropped nearly 14% from its Aug 13’s high of $0.0768.
As it happens, DOGE whales have become super active, according to data resource Whale Alert. The account has flagged multiple large-scale transactions that may have been part of huge selling orders. For instance, an unknown wallet moved 82.8 million DOGE tokens (worth over $5.7 million) to Robinhood.
On the other hand, another user transferred over 317.5 million DOGE tokens (worth over $22.2 million) from Binance to an unknown wallet address.
It seems market participants continue to anticipate a probable Elon Musk tweet that might help kickstart another DOGE price rally.
X users continued to quote old Musk interviews to keep speculations of DOGE’s inclusion in the Tesla CEO’s grand schemes regarding the social media platform’s future.
DOGE Price Moving Inside A Bearish Pattern
Meanwhile, the DOGE price has been moving inside a bearish technical pattern called the “Descending Triangle.“
The descending triangle is a bearish continuation setup with a falling resistance line that caps upside attempts and a flat support that prevents declines. The height of the triangle’s thickest section determines the price target in a descending triangle setup.
Currently, the DOGE price is testing the falling resistance trendline of the pattern. If the Dogecoin price breakdown with high volume and confirms the pattern, the memecoin price might drop over 61% to reach $0.026 before recovering.
Dogecoin Price Momentum Showing Increasing Bearishness
Moreover, the bearish momentum for Dogecoin seems to be increasing following the token’s recent decline. The DOGE price rally also resulted in the token erasing its gains since July 13. On Aug 17, DOGE price spiked by 3.6% to a daily high near $0.0685 before bears pared most of the day’s gains.
The momentum oscillator MACD is showing increasing bearish momentum for the Dogecoin token. Negative bars on the MACD histogram are expanding, indicating the MACD line (difference between 12-day and 26-day EMA) moves toward the MACD signal line (9-day EMA of MACD).
Furthermore, long upper wicks on DOGE’s daily price candles highlight the bearish pressure against the token. If the downtrend continues, the Dogecoin token price might drop to the support near $0.066.
Moreover, breaching the immediate support level might force the DOGE price to test the support near $0.063 before recovering.
On the other hand, a Musk tweet might attract DOGE buyers to the market, pumping the meme token to the resistance near $0.07. Breaking and consolidating above the immediate resistance could help the DOGE price target the resistance near $0.075 before recovering.
