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  • Dogecoin price loses support at $0.3, triggering sell orders.
  • Increasing volume could validate DOGE’s downswing to $0.25.
  • A descending triangle pattern breakout on the four-hour chart adds credence to the bearish outlook.

Dogecoin price seems to be ushering in the weekend session with losses after failing to defend the support at $0.3. The meme coin has sustained a downtrend since the record high of $0.75, achieved in May.

The short-term technical outlook hints at Dogecoin price dropping further. Immediate support is foreseen at $0.28. However, on the four-hour chart, a highly bearish pattern points toward a continued downward action in the short term.

Where is Dogecoin price heading after breaking from descending triangle?

Dogecoin price has slipped below the horizontal support of a descending triangle. The price broke this anchor zone, following a tighter range period that saw a harrowing battle between the bulls and the bears.

The descending triangle is a continuation pattern in technical analysis and used by traders to confirm the extent of a downtrend after consolidation. Realize that the descending trend line illustrates a growing bearish momentum. On the other hand, the x-axis highlights support that sellers struggle to break.

Usually, the price cracks the horizontal support and keeps falling as the Dogecoin price action affirms. It is essential to note that in some situations, the support holds, and the descending triangle breakout is invalidated.

In the meantime Dogecoin price has confirmed the break at the x-axis, allowing bears to push for more losses. If DOGE closes the day below this level, the bearish leg may extend 15% to revisit the support at $0.24. As illustrated, triangles have precise breakout targets equal to the distance between the highest to the lowest points.

DOGE/USD 4-hour chart

DOGE/USD price chart
DOGE/USD price chart by Tradingview

The ongoing has been confirmed by other technical indicators such as the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) on the same four-hour chart. With the RSI profoundly in the oversold region, the technical implies that sellers are firmly in control.

Simultaneously, the MACD has a massive bearish outlook based on the position of the indicator. The failure to settle above the zero line diminished investor interest as bears grew stronger. Hence, the MACD line (blue) crossed below the signal line, adding weight to the overhead pressure at $0.3. As the divergence between the MACD and the signal line widens, we expect Dogecoin to stretch the bearish leg toward $0.24.

Looking at the other side of the fence

A higher support is expected at $0.28 which might sabotage to downtrend to $0.24. Here, bulls will strive to regain balance and stability. With these two things, buyers will have the opportunity to bolster above $0.3. A confirmed break above this level would call more buyers into the market speculations for gains eyeing $0.4.

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