• Why is now a good time to purchase Dogecoin?

  • On the charts, Dogecoin has had a fairly poor week. A symmetrical triangle breakdown favored the bears, as short-sellers launched additional drawdowns below $0.280. In fact, DOGE was the worst weekly performer among the top ten coins, falling by more than 11%.

    On the plus side, DOGE’s falling wedge suggested the possibility of an impending price increase and a return above the swing high of $0.35 set on August 15th. DOGE was trading at $0.290 at the time of writing, with a market valuation of $38.12 billion.

    12-hour Dogecoin Chart

    Before attempting an expanding wedge setup, it is critical to recognize that this pattern has not yet fully formed. In fact, another low of $0.280 was predicted. In the event of an early breakout, DOGE must first decisively close above the 20-SMA (red).

    This would propel DOGE towards the next goals of $0.35 and the swing high of $0.38 on May 25th. A low made below $0.26, on the other hand, would present opportunities for short-sellers to incur more losses.

    Reasoning

    A few of DOGE’s indicators indicated significant developments when it reversed from its 12-hour 200-SMA. For example, the RSI avoided falling into bearish area and remained near to equilibrium, adding support to a positive recovery.

    Meanwhile, as selling pressure has eased in recent days, MACD has approached a positive crossover. Likewise, the Directional Movement Index was on the verge of a significant crossover over the -DI line. All of these indicators acted as purchase triggers in the market.

    Conclusion

    Dogecoin set the tone for a bullish price surge after logging previous losses. Its price was trading within the limits of a falling wedge configuration, which normally signals an upward breakout.

    In the event of such a result, take-profits can be set between $0.35 and $0.38. However, before such a move, a bottom at $0.280 might occur, providing an excellent buy opportunity for bullish traders.

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