Key Takeaways:
- DOGE price is moving inside a bearish pattern.
- However, Dogecoin has lined up some bullish cues.
- The token’s recent rally faces bearish pressure.
NEW DELHI (CoinChapter.com) — Meme token Dogecoin (DOGE) price has formed a bearish pattern called the ‘Descending Triangle.’
The bearish pattern usually forms as a continuation pattern during a downtrend. However, analysts have observed the pattern sometimes forming after an uptrend as a reversal pattern.
The pattern can be traced by connecting a series of lower highs with a descending trendline and the corresponding lows with a horizontal trendline.
The height of the triangle’s thickest section determines the price target in a descending triangle setup. Volume usually declines at the time of breakout.
If DOGE price confirms the triangle setup, the memecoin’s price could drop nearly 53% to reach the theoretical price target near $0.029.
Furthermore, Dogecoin faces bearish pressure from Binance’s announcement of delisting a DOGE trading pair from its platform. The DOGE/BIDR trading pair was among several other BIDR (a BEP2 stablecoin pegged to the Indonesian rupiah) and BUSD trading pairs.
Binance stated that the exchange often delists trading pairs owing to reasons such as “poor liquidity and trading volume.”
While the delisting is of a trading pair that should not impact DOGE’s price in US dollars, however, meme token prices tend to react with volatility to both bullish and bearish news.
A bearish reaction could result in DOGE price validating the descending triangle pattern, adding to the bearish pressure against the meme token.
Dogecoin Racks Up Bullish Cues
However, not all is doom and gloom for Dogecoin. On Sept. 28, Crypto.com announced the listing of DOGE against the PayPal USD (PYUSD). PayPal had recently launched the new stablecoin as part of its efforts to expand its presence in the crypto sector.
Crypto.com announced partnering with PayPal and Paxos to become a “preferred PayPal USD (PYUSD) exchange.”
The announcement to list the DOGE/PYUSD trading pair likely stems from the partnership. Additionally, the exchange announced PYUSD trading pairs for XRP (Ripple) and SOL (Solana) tokens.
In addition, the funding rate for Dogecoin’s perpetual contracts continued to be positive.
Funding rates refer to the periodic payments that futures contract holders receive, and it is equal to the difference between perpetual contracts and spot prices.
However, Coinglass data shows that open interest for DOGE perpetual contracts remained mostly flat, suggesting the number of open contracts on the market remained unchanged. The nearly negligible liquidations further underscore the lack of trader activity.
DOGE Price Rallies, But 20EMA Rebuffs Uptrend
Meanwhile, Dogecoin price rallied over 3% since Sept. 28 to reach a daily high of $0.0622 on Sept. 29 near the token’s 20-day EMA (red wave). However, it seems that bears are defending the 20-day EMA dynamic resistance, with the trendline rebuffing DOGE price’s uptrend, shaving gains.
Short traders could be selling their DOGE tokens to ensure the memecoin’s recent rally does not lead to liquidations.
Bulls must breach the EMA trendline before pushing DOGE price to the 50-day EMA (purple wave) resistance near $0.064. Moreover, breaking and consolidating above the immediate resistance might help Dogecoin price target the 100-day EMA (blue wave) near $0.0667.
Conversely, if DOGE prices start dropping, the meme token might end up testing the support near $0.06, which has supported Dogecoin’s price action since June 2023.
Failure of the immediate support level might force DOGE price to test the support near $0.058 before recovering.
The RSI for DOGE remained neutral, clocking a score of 46.45 on the daily charts.
