Key Takeaways:
- Dogecoin price consolidation in recent days has painted a bear flag pattern.
- The flag price target is 20% below the current levels.
- Elon Musk, X could still influence prices in either directions.
YEREVAN (CoinChapter.com) — Dogecoin bulls should brace for impact in Q3/2023 as the DOGE price paints a classic bearish continuation pattern on its four-hour chart.
Dogecoin Eyes 20% Decline by September
The recent bout of consolidation in the Dogecoin market has left behind a “bear flag” pattern.
For the unversed: Bear Flags are upward consolidation patterns that appear after a strong downside move called “flagpole.” Typically, they resolve after the price breaks out of their range to the downside, and falls by as much as the flagpole’s height 46% of all times.
As of Aug 24, the DOGE price was treading near the flag’s lower trendline, potentially eyeing a rebound toward the upper trendline near $0.065. Nonetheless, its overall bias remains skewed to the downside, triggered if the price breaks below the lower trendline this week or later.
Suppose a breakdown happens. Then, the DOGE price risks falling toward $0.049 in Q3/2023, down about 20% from current price levels.
Conversely, a break above the flag’s upper trendline and the Dogecoin’s 200-4H exponential moving average (200-4H EMA; the red wave) near $0.0065 could invalidate the bearish continuation setup. Suppose it happens. Then, the DOGE price’s upside target could be the 50-4H EMA (the blue wave) near $0.069.
In other words, a 12% Dogecoin price rally by the end of September 2023.
Keep Watching Elon Musk, X Updates
Dogecoin’s price behaviors change dramatically due to billionaire entrepreneur Elon Musk and his prospects of adding a DOGE payment option on his social media platform, X (formerly known as Twitter).
Traders are advised to check X updates on potential crypto wallets or payment option integrations. Still, their possible occurrences could move price violently in either direction — they won’t guarantee a steady trend.
