Dogecoin is facing a significant market test as it stands on the brink of major price changes. Analyst Ali provides an overview of the situation and possible scenarios.
Current Price Situation of Dogecoin
Analyst Ali shared a Dogecoin price chart, showing that the cryptocurrency is trading within an ascending channel, a bullish pattern defined by a trend line supporting a series of higher lows and a diagonal resistance level connecting the higher highs.
Potential Scenarios
If Dogecoin holds the support level around $0.16, it could rally to higher resistance levels, potentially targeting $6.33. However, false breakouts are possible, which might bring prices back into the channel.
Factors Influencing Dogecoin's Future
If the trendline support breaks, a bearish move could occur. Dogecoin recently found support at $0.143, corresponding to the weekly chart's 200-day SMA.
Currently, the market is closely observing changes to determine if bulls can take control and start a new uptrend for Dogecoin.
