NOIDA (CoinChapter.com) — Dogecoin (DOGE) recently climbed 30%, now trading around $0.144, following a surge in speculative interest. Elon Musk’s influence again played a role, particularly after Tesla launched new self-driving robots and EVs in mid-October, which fueled fresh investor attention.
Dogecoin rose by 7% during the event, as Musk hinted at potential use cases for DOGE in Tesla’s autonomous systems. However, the recent rally faces uncertainty as market sentiment turns cautious.
DOGE Breakout Retests Support
Dogecoin’s price broke out from a long-term falling wedge, a bullish reversal pattern, which signals the end of a downtrend. Two converging downward trendlines that connect lower highs and lower lows form the falling wedge, a bullish reversal.
The narrowing structure shows that, despite the ongoing downtrend, the bearish momentum is gradually weakening, often preceding an upward breakout.
The key feature of a falling wedge is that the slope of the lower trendline is steeper than that of the upper trendline, indicating that selling pressure is dissipating. When the breakout occurs—typically upward—it signals buyers taking control.
The breakout occurred when DOGE moved past the upper trendline of the wedge before retesting the upper wedge trendline. Though the token rebounded after testing the wedge’s support, the DOGE USD pair seems unlikely to reach the pattern’s target anytime soon.
Despite the breakout, DOGE’s momentum has cooled, with the funding rate and open interest showing bearish signals. The futures funding rate, an indicator of trader sentiment, dropped on Oct. 21 and 22, suggesting that leveraged traders are increasingly betting against DOGE.
Open interest, which tracks the total number of open contracts, has also flattened, indicating that speculative interest is waning. This could lead to increased selling pressure as traders exit positions.
DOGE Price Momentum Weakening
The DOGE USD pair’s uptrend seems to have hit a wall despite the token’s 50-day EMA (purple) and 100-day EMA (blue) trendlines forming a golden cross. The support at $0.140 is now critical. A breakdown below this level could spark further selling, pushing prices lower.
Market participants are likely waiting for clearer signals before making decisive moves, but with declining funding rates, any market weakness could trigger a sell-off. DOGE’s ability to hold above this level will be essential for bulls to prevent further downside risk.
Furthermore, the token’s RSI is at its most overbought level since March earlier this year, with a score near 72.6. The downtrend has lessened the RSI score, making the trendline return to the neutral region.
Should the downtrend continue, DOGE price could drop to the support level near $0.134. Moreover, failure of the immediate support level could force the Dogecoin price to the support level near $0.114.
On the other hand, an uptrend would force bulls to overcome the resistance near $0.17 before targeting the resistance near $0.19.
