Dogecoin (DOGE) has made many good moves to expand its recovery state among the bear market.
Statistical: 79% chance doge will expand recovery move
Since May 11, DOGE seems to have tended to draw bump-and-run reversal (BARR) bottoms, consisting of three successful stages: Lead, Bump, and Run.
The Lead stage shows that the price is consolidating in a narrow and sideways range, which represents temporary bias among investors.
After the Bump phase: the price drops and recovers sharply, leading to a breakout in price, which is determined by the Run phase.
Dogecoin appears to be in the Bump Phase while monitoring the breakout above the resistance of the barr bottom's downtrend line. Assuming DOGE rises above the already ceiling price, it will gradually head towards barr's starting level as a common rule of technical analysis,DOGE
price on its way up to $0.0941, up more than 20% from the price on June 27. The bullish target also coincides with the token's 50-week exponential moving average (50-week EMA; blue line in the chart below).
According to a report by veteran investor Thomas Bulkowski, the BARR bottom has reached its all-time profit target of 79%. The breakout phase of the model usually yields an average increase of 55%, so the potential of DOGE reaching $0.123 remains in the cards.
Is the DOGE price bottoming out?
Despite the uptrend, $0.0941 may still be uncertain to help DOGE break out of the bearish trend due to a range of technical and fundamental factors.
From a technical perspective, doge price risk falls into the bullish trap as it tends to rise (up nearly 60% in the last 9 days). Notably, the bearish trend of this coin appears due to the bullish pattern on the lower time frame chart.
Specifically, the DOGE was in an uptrend in a range defined by two ascendant and narrowing trend lines thus forming an uptrend wedge.
As a rule, this technical setup leads to a bearish reversal, which is confirmed when the price breaks below the trendline of the wedge. As such, the price can be reduced by the maximum distance between the upper and lower trend lines of the wedge.
setting The potential breakout of the DOGE bullish wedge is in the $0.07-$0.08 range. So the token could fall to the $0.05-$0.06 zone if the wedge analysis goes ahead as expected, down 15%-25% from the current price.
Fundamentals, including the Federal Reserve raising interest rates and a $9 trillion reduction in its balance sheet, support the technically downward outlook for short- and medium-term terms.
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