Dogecoin Faces Low Risk at $0.072 as Analyst Cites Descending Triangle Formation

Popular cryptocurrency analyst and trader, Crypto Daily Trade Signals, released a warning in the Dogecoin community about the potential risk of the meme-inspired crypto asset as it faces a bearish technical pattern amid widespread pessimism in the digital asset market recently.

Dogecoin Forms Bearish Descending Triangle Pattern

Analysis of Crypto Daily Trade Signals reviews DogecoinCurrent market formation, identifying the formation of a Descending Triangle Pattern. A descending triangle is characterized by a series of lower highs that push into the flat support level currently located at $0.121, and is generally seen as a bearish continuation signal.

According to experts, although the base of the triangle at $0.121 provides strong support for DOGE, the current conditions of the bearish market brought Bitcoin, a major asset of cryptocurrency, would render it meaningless. In addition, he noted that after testing the support level about 3 times, investors hope that the level will hold this time.

The post reads:

DOGE price was previously trending inside a large descending triangle. The triangle base provides strong support for DOGE but the current market conditions created by Bitcoin may make it worthless. Support has been tested three times before and investors are hoping it will hold water now.

The Crypto Daily Trade Signal has reiterated another bearish trend in the asset price, which is indicated by the DOGE trending below the 50-day and 200-day Simple Moving Average (SMA).

It is important to note that descending triangles usually do not look, but when they resolve to the top, they usually trigger an explosive rally. If there is a rebound at this price point, the analyst believes THE DOGE it may break out of the current market structure and reach $0.237. However, the path for the crypto asset side may not be easy as the Crypto Daily Trade Signals revealed two key resistance levels at $0.182 and $0.206.

In the meantime, if the crypto asset fails to rebound and falls below the base of the triangle, the expert expects to drop to $0.96 at the price level and even higher at the $0.072 level in the coming days.

Growing Optimism From Investors

Given that Dogecoin has been struggling to regain momentum, this technical analysis comes at an important time meme coin. The general market decline has increased the difficulty, as investors continue to lose faith in the short-term potential of cryptocurrencies.

As the DOGE continues to hover in the descending triangle, the next few days will be crucial in determining whether the stock can withstand bearish pressures or give way to a bigger drop.

At the time of writing, DOGE attracted a positive outlook, trading at $0.125, representing a 2.79% increase over the previous day. While the market margin rose more than 2%, its trading volume fell more than 34% in the previous day. Today’s momentum seen in the meme coin market suggests that DOGE may be in a position to attract more gains in the coming days.

Featured image from Adobe Stock, chart from Tradingview.com