DOGE coils in falling wedge – breakout near?

Although things may not look very bullish across the wider cryptocurrency market, Dogecoin (DOGE) is coiling within a falling wedge pattern while its Relative Strength Index (RSI) approaches long-term support, a combination signaling an impending bullish reversal.

Specifically, DOGE has been consolidating in a descending wedge formation on its 4-hour chart, a structure typically taking shape near the end of corrective moves, per an analysis by popular crypto expert Trader Tardigrade shared in an X post on October 22.

As it happens, this setup shows price tightening between converging trendlines with diminishing volatility, which are the conditions that often precede a breakout. As the crypto trading analyst put it: 

“Dogecoin is nearing the verge of a falling wedge chart pattern, and its RSI is approaching support.”

RSI hints at rebound potential

Indeed, Dogecoin’s RSI is currently holding an upward-sloping support line that has historically acted as a springboard for bullish momentum. Previously, each bounce from this RSI trendline has aligned with a short-term DOGE rally. The convergence of RSI support with wedge compression adds technical confluence for a potential move higher.

Currently, Dogecoin is changing hands at $0.1911, which indicates a decline of 1.03% in the last 24 hours, as well as a 7.05% dip across the previous seven days, alongside a drop of 20.19% accumulated on its monthly chart, according to the most recent price data.

Meanwhile, DOGE’s horizontal support around $0.19 has held firm through recent volatility, forming the wedge’s base. 

A decisive breakout above $0.20 – $0.202, alongside positive Dogecoin news like its commercial arm acquiring a majority stake in a historic Italian professional football club, could confirm the pattern and open the door to targets in the $0.21 – $0.22 range. 

On the flip side, a clean break below $0.19 would invalidate the bullish structure and risk a move toward $0.185.