• Dogecoin is forming a bear flag pattern, which could lead to a 20% decline in the DOGE price by September.
• A breakdown from the lower trendline of the bear flag could trigger the sell-off.
• Traders should watch out for news regarding Elon Musk and X for updates on potential crypto wallets or payment integrations that may influence prices.
Dogecoin Price Consolidation Paints Bear Flag
Dogecoin (DOGE) bulls should brace for impact in Q3/2023 as the DOGE price paints a classic bearish continuation pattern on its four-hour chart. The recent bout of consolidation in the Dogecoin market has left behind a “bear flag” pattern, which typically resolves after breaking down from its range and falling by as much as the height of the flagpole 46% of all times. As of Aug 24, DOGE was trading near its lower trendline, potentially eyeing a rebound toward $0.065; however, its overall bias remains skewed to the downside if it breaks below this level. In such a case, traders should expect DOGE to fall toward $0.049 within Q3/2023 — resulting in about 20% decline from current levels.
Upside Bullish Scenario
On the other hand, if Dogecoin manages to break above both its upper trendline and 200-4H exponential moving average near $0.0065, it could invalidate the bearish setup and result in an upside target near $0.069 — roughly 12%.
Watch Out For Elon Musk & X Updates
Traders should keep an eye out for news regarding billionaire entrepreneur Elon Musk and his social media platform X (formerly known as Twitter) as their possible occurrences could move Dogecoin prices violently in either direction — not guaranteeing any steady trends.
Key Takeaways
• Dogecoin is forming a bear flag pattern which could lead to a 20% decline by September if broken down from its lower trendline
• A breakout above both upper trendline and 200-4H EMA near $0.0065 invalidates bearish setup with 12% upside potentials
• Watch out for news regarding Elon Musk & X updates that can influence prices drastically