According to a recent analysis, leading memecoin Dogecoin (CRYPTO: DOGE) showed a positive trend this week, but a recent rejection at the topside of a pennant suggests that further gains are limited.
See Also: HOW TO BUY DOGECOIN (DOGE)
What Happened: According to a Saturday FXStreet analysis, Dogecoin's recent price action was limited by a descending trendline and a resistance level.
Now, prices are expected to get squeezed over the coming weeks, and the recent rejection at the top of the pennant suggests a bearish turn.
Recently, Dogecoin's price bounced off of an ascending trend line at $0.19 which resulted in the price topping at $0.29, hitting the monthly R1 resistance level and seeing a descending trend line from mid-August form a topside of the pennant. This limited Dogecoin's profits to only 50%.
Now Dogecoin bulls could try to form a green candle above $0.26, if the attempt is successful the analysts "expect a preemptive breakout from the pennant and the red descending trend towards $0.35."
If the price consolidates at such levels, bulls would be free to charge again and would find less resistance when proceeding to $0.35 and might even see $0.50 as a price target.
If bearish sentiment wins, major support levels can be found at the $0.19 and $0.16 price levels. The $0.14 price level is expected to be the floor that bulls will be guarding the most fiercely, since this is seen as a discount price for the coin.
Related Link: EXCLUSIVE: The 'Dogecoin Millionaire' Hasn't Sold A Single DOGE — Here Are His New Bets
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!