On the daily timeframe, it can be seen that since June 2023, Dogecoin has been inside an ascending parallel channel.

In December, the price made a bullish breakout from this channel, reaching a maximum value of $0.108. However, in early January 2024, Dogecoin returned back inside the channel.

Since then, two unsuccessful breakout attempts have been made, while the upper wicks have formed. The second rebound occurred after a special X Payments account appeared in the social media segment of X (formerly Twitter), which stimulated speculation that DOGE, supported by Musk, would be used to make cryptocurrency payments as part of X's strategy to introduce a peer-to-peer payment feature on their platform.

The daily Relative Strength Index (RSI) shows bearish signals, being below the 50 mark and declining , indicating a downtrend.

DOGE Forecast: What to expect from a bearish pattern

Similarly, the six-hour chart also shows a bearish outlook related to Dogecoin price dynamics and RSI indicators.

The price has been moving below the downward resistance line since reaching the aforementioned high in December 2023. Most recently, on January 21, 2024, the token bounced off this trend line.

The resistance line in combination with the horizontal zone at $0.077 forms a descending triangle pattern, which is considered a bearish pattern.

The six-hour RSI also supports the decline, being below the 50 mark and declining. A complete overcoming of the bearish pattern will lead to a 27% decrease in Dogecoin, bringing the price closer to the nearest support at $0.058.

On the other hand, a successful bullish breakout of the short-term downward resistance line may stimulate the DOGE to grow by 14%, reaching the nearest resistance level at $0.088.