Dogecoin (DOGE) is Currently Trading in a Bullish Formation Due to the Formation of Falling Wedges

At the time of writing, Dogecoin (DOGE) is currently trading in a bullish formation due to the formation of falling wedges among traders.

Dogecoin (CRYPTO: DOGE) is currently trading in a bullish formation due to the formation of falling wedges among traders. In a recent X post, Rose Premium Signals mentioned that the cryptocurrency must avoid breaking the $0.14750 support level in order to continue to push higher. Thus, if the price stays above it, one might witness a significant bullish movement. However, a continuation of this situation may result in the further consolidation before anything big happens.

🕊 $DOGE Technical AnalysisHolding above $0.14750 is key for the bullish scenario.Failure to maintain this level could lead to further consolidation before a breakout.⚡ Conclusion: Dogecoin is showing signs of a potential breakout from a falling wedge pattern. If the… pic.twitter.com/i9adqAPtaC— Premium Signals (@signals_p) August 16, 2023

From a technical perspective, Dogecoin has positioned itself for a possible rally. The falling wedge pattern is usually considered to be bullish, and therefore, the collapse could mean a breakout. Analysts have provided forecasts for major resistance levels in DOGE with the first one at $0.46. Another target of $0.55 has been predicted. Should it continue to have a positive run, then Dogecoin may further surge to as high as $0.65 within the short term from current prices.

Therefore, there is a possibility that the market sentiment will play a big part in dictating the next move by DOGE. The bulls may emerge to push the price higher upon a breakdown of the support level, and a hold above the same level may lure more buyers.

On the other hand, if the sellers seize the bull by the horns and drive the prices beneath $0.14750, it may experience sideway trading or may even undergo a short bearish phase. This has made many traders to keep an eye on the price movements seeking to confirm that this bullish picture will play out.

The overall cryptocurrency market will also have an impact on the possibility of Dogecoin breaking out. Should the Bitcoin (BTC) and other large cryptocurrencies repeat their upward trend, more attention, and investment would go towards altcoins such as DOGE. Greater trading volumes, coupled with the increase in interest in the cryptocurrency space again, may help DOGE cross its respective resistance levels. As of press time, DOGE is trading at $0.1703, showing a 0.85% increase over the past day.

Dogecoin: Chart by TradingView

Currently, the focus of traders and investors is on whether Dogecoin can sustain this support level. Above $0.46, it will signify a clear break out into the bulls zone, which will in the desire of the bulls be boosted. Dogecoin’s technical outlook means that more interesting news may be expected by the market in the coming days.