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Dogecoin Eyes 20% Decline: Musk & X Could Impact Price

• Dogecoin is painting a bear flag pattern on its four-hour chart, with the price target set at 20% below the current levels.
• A break above the flag’s upper trendline and 200-4H EMA could invalidate the bearish setup and result in a 12% rally by September.
• Elon Musk and X updates could influence prices in either direction.

Dogecoin Price Consolidation Forms Bear Flag Pattern

Dogecoin (DOGE) prices have been consolidating in recent days, painting a classic bearish continuation pattern – a “bear flag” – on its four-hour chart. This suggests that Dogecoin bulls should brace for impact, with the price target estimated to be 20% below current levels.

Flag Breakdown Could Send DOGE Toward $0.049

The lower trendline of the bear flag serves as support for DOGE/USD, potentially allowing it to rebound toward the upper trendline near $0.065 before breaking out of its range to the downside. If such a breakdown occurs, then Dogecoin’s price risks falling toward $0.049 by Q3/2023, which would represent a 20% decline from current levels.

Defense Against Bearish Setup: Break Above Upper Trendline & 200 EMA

Conversely, if DOGE manages to break above both the flag’s upper trendline and its 200-4H exponential moving average (200-4H EMA; red wave), then traders should expect an upside target of around $0.069 – or 12% higher than current levels – by end of September 2023.

Elon Musk & X Updates Could Move Prices Violently

Billionaire entrepreneur Elon Musk’s potential decision to add Dogecoin as a payment option on his social media platform X (formerly known as Twitter) could cause prices to move violently in either direction regardless of technical indicators or analysis based on trading patterns like bear flags.. Therefore, traders are advised to keep an eye out for any updates related to this matter when making their decisions regarding DOGE investment positions.

ConclusionIn conclusion, Dogecoin investors should be aware that bear flags often resolve after price breaks out of their range towards downside targets – in this case estimated at 20% below current levels – but there is also potential for upside if certain conditions are met within specified time frames