Dogecoin price has failed to escape the confines of a multi-month downtrend since October 2022 likely to push for another sweep at liquidity from support at $0.045 ahead of the next recovery attempt.
A glance at DOGE on shorter timeframes shows a volatile token, however, a comprehensive long-term chart outlook reveals a crypto that continues to fail at all attempts to break free from a longstanding downtrend.
Dogecoin price is up 0.4% to $0.061 on Tuesday amid a persistent push from sellers to weaken support at $0.60 and complete a bearish fractal to $0.045.
Dogecoin Price Bearish Fractal Update
A descending channel engulfs Dogecoin price on the weekly chart, suggesting that the current downtrend is far from over. With the channel support and resistance holding firmly, DOGE is confined to wobbling within a narrow descending range.
Rejection from the upper boundary has since October 2022 become a norm while bulls focus on ensuring the lower boundary is defended at all costs.
A bearish fractal pattern reinforces the channel resistance and support areas, hence the possibility of another dip to $0.045 before DOGE aligns for the next major breakout.
A fractal indicator helps traders to identify potential trend reversal. Every time Dogecoin has touched the channel’s upper boundary, it has rolled back to the channel’s lower boundary.
With that in mind, we can foresee the possibility of the downtrend extending to $0.045 before the next swing higher.
However, the sideways outlook shown by the Moving Average Convergence Divergence (MACD) indicator could break the pattern in favor of a rebound from the immediate support at $0.06. It is important not to underestimate support from the descending channel’s middle boundary.
A continued uptrend would be required to help with the subsequent breakout above the channel. Note that increased trading volumes are paramount for such a trend reversal to occur. In that case, short-term profit booking could start at $0.07 but Dogecoin is likely to ease into a bull market with the reclamation of the ground above the 50-week Exponential Moving Average (EMA) (red) at $0.08.
Will Elon Musk’s X Integrate DOGE Payments
The Dogecoin community has been waiting for a signal from X, formerly Twitter that the push to support payments will include the largest meme coin. X has been applying for licenses to offer payments and support transactions, without mentioning the possibility of adding support for crypto transactions.
However, many speculate that Dogecoin might be among the cryptos likely to be considered to power payments on X, the social blogging platform, working to become the “Everything App.”
Musk’s link to Dogecoin goes back many years ago when he stated that Dogecoin is his favorite crypto. The billionaire has been rumored to be secretly contributing to the development of the network, not to mention he once proclaimed that he is the “dogefather.”
In response to a Doge Designer’s inquiry over the need to change the birdhouse icon used to show X’s home feature, Elon Musk said “We will.” While this does not necessarily mean the bird logo will give way to Dogecoin’s logo, the community welcomed the idea with open arms.
We will
— Elon Musk (@elonmusk) September 25, 2023
When X, then Twitter, briefly changed the bird logo to a Dogecoin logo, Dogecoin price exploded. The integration of Dogecoin to represent the home feature on X could have a massive impact on the meme coin.
At the peak of this speculation could be support for Doge payments, which could increase Dogecoin’s exposure to millions of people around the world and trigger a bull run. Investors with a long-term outlook for Dogecoin foresee a breakout to $1 during the likely bull market expected in 2024/2025.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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