Can the Canine Break Free? Dogecoin’s Price Action Hinges on a Crucial Wedge Pattern as Market Sentiment Hangs in the Balance

Dogecoin (DOGE), the memecoin that once rode the crest of viral hype, is once again capturing investor attention with a modest 3% price

Canine coin is known for its close ties to the meme stock universe, specifically inli.

The price of Dogecoin (CRYPTO: DOGE) is up 3% over the last 24 hours. Dogecoin is trading at $0.1749 at the time of writing.

This price action comes as crypto traders continue to watch for a new price move after bitcoin (CRYPTO: BTC) stalled in its recent attempts to break new all-time highs. The crypto market cap is up 1.4% over the last 24 hours and total crypto market cap is now at $2.9 trillion.

What Happened: Dogecoin is now trading above the lower boundary of a falling wedge pattern on the 98%/97% MACD. The technical indicator is used by traders to measure momentum and it can indicate the strength of a trend. A stronger, bullish crossover of the MACD line in blue, over the signal line in orange, would be needed to confirm a reversal. The MACD is also close to zero, which can indicate weak momentum.

The 200-day Simple Moving Average is at $0.2497 and the 50-day SMA is at $0.2268. Both SMAs are trading above the current price of Dogecoin, which shows the cryptocurrency is still struggling to regain bullish momentum and overcome the long-term resistance levels.

The last key pivot point, marked as D on the chart, comes at $0.1688 and acts as a strong support level. The next pivot point, C, comes at $0.2018 and may provide some resistance to price increases.

The Relative Strength Index is at 40.88 and indicates weak momentum but not yet oversold conditions. An RSI reading below 30 would be considered oversold.

The crypto price is also getting close to the Fib level of $0.15, which could provide some support for the cryptocurrency.

Related Link: Benzinga's Guide to Investing in Cryptocurrency

Why It Matters: Dogecoin has fallen significantly from its 52-week high of $0.862, reached in October 2024. The meme coin has been a favorite target of retail traders, especially during the meme stock mania of early 2024.

Dogecoin is best known for its ties to billionaire Elon Musk, who has frequently mentioned the cryptocurrency on social media. Musk's involvement has helped to drive interest in Dogecoin among retail investors.

The cryptocurrency is also a popular topic of discussion in online forums and message boards, where traders often share their thoughts and analysis of the coin's price movements.

With its large and active community, Dogecoin has become a cultural phenomenon, blurring the lines between meme and money.

Now traders are keeping a close eye on whether Dogecoin can continue to move higher or if the cryptocurrency will fall to new lows.

Later this week, the Consumer Price Index report for July will be released. Economists polled by Benzinga are expecting an annual CPI increase of 3.9%, compared to June's reading of 3%. A strong CPI report could lead to greater risk appetite for traders and investors.

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