• Dogecoin is forming a bearish flag pattern on its 4-hour chart, potentially leading to a 20% downside price target.
• Elon Musk and his X platform could influence prices in either direction.
• Traders should keep an eye on X for potential crypto wallets or payment option integrations.
Dogecoin Price Consolidation Forms Bear Flag Pattern
Dogecoin has been consolidating in recent days, leaving behind a “bear flag” pattern on its four-hour chart. This formation typically resolves after the price breaks out of their range to the downside, and falls by as much as the flagpole’s height 46% of all times. A breakdown of the lower trendline this week or later could see Dogecoin fall towards $0.049 in Q3/2023, down about 20% from current levels.
Upside Invalidation for Bear Flag Pattern
On the other hand, if Dogecoin manages to break above the flag’s upper trendline and its 200-4H exponential moving average (200-4H EMA), then it could invalidate the bearish continuation setup and lead to an upside target at $0.069 — representing a 12% rally by September 2023.
Elon Musk & X Could Impact Prices
Billionaire entrepreneur Elon Musk and his prospects of adding a DOGE payment option on his social media platform X (formerly known as Twitter) can substantially impact prices in either direction without any guarantees of steady trends. Therefore, traders should keep track of any potential crypto wallet or payment option integrations that might appear on this platform.
Key Takeaways
• Dogecoin is forming a bearish flag pattern with a potential 20% downside price target if it breaks below its lower trendline soon;
• Breaking above the upper trendline and 200-4H EMA could invalidate this bearish setup with an upside target at $0.069;
• Investors need to monitor Elon Musk’s X platform for crypto wallet or payment option updates which could move prices violently in either direction
