Dogecoin’s year has been dramatic. DOGEUSD, which was launched just one year ago has passed the 1 cent mark. DOGEUSD is on a meme-fueled moon mission towards $1.
The downtrend never reached its peak and it has been going lower ever since. Altcoin is now at risk of another fatal drop as the downtrend continues to descend. This is what Dogecoin could face in the coming days.
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Every coin has two sides, and every dog is not perfect. Dogecoin was last year’s cryptocurrency all-star, rising from under a penny to nearly $1. The cryptocurrency even made it into the top five most valuable cryptocurrencies according market cap. There were countless imitators.
The popular coin, which is pup-based, has been loved by everyone from the Dogefather to Elon Musk. Celebrities and mainstream people rode the Dogecoin rocket towards success. Robinhood investors celebrated; memes-coins were viralized on TikTok.
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Because of the risky macro environment, the ride has been quite bumpy. One chart trend might indicate that you should abandon ship and give your DOGE (or dollar) back to the Pound.
Do you think this is Dogecoin's descending triangle?Source: DOGEUSD at TradingView.com | Source: DOGEUSD on TradingView.com
Dogecoin: The Dangerous Descending Triangle
Dogecoin may be showing a possible triangle chart pattern in the descending direction, as shown above. The primary phase in the Bitcoin bear markets is shown side-by-side with DOGEUSD. Dogecoin could see an identical drop and would be back at around five to ten dollars per coin, or less.
Descending triangles have a bearish tendency to break down below support, but that doesn’t necessarily mean certain doom for DOGE.
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The comparison shows that Bitcoin dropped another half-off to the bear market bottom. Following the last breakdown of the triangle the bottom was reached, and the cycle was reopened.
While things could turn worse for Dogecoin investors – especially those who bought near the peak – it might also not be very long until the market reverses if the range lower can be defended.
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Featured image taken from iStockPhoto. Charts taken from TradingView.com