Because it represents a change in momentum from bullish to bearish, this technical pattern – which is occurring around the $0.12 level – usually indicates the possibility of a protracted downtrend.
A bearish outlook for Dogecoin may be confirmed if the 100 EMA crosses below the 200 EMA and remains there. The price of DOGE would probably decline more as a result of this event, discouraging buyers and drawing sellers. Though not all death crosses result in large losses, historically, they have frequently preceded protracted periods of price declines.
Three crucial Dogecoin price levels need to be regularly watched: the immediate resistance level at which the possible cross might take place is $0.12. DOGE may find it difficult to regain bullish momentum if it is unable to break above this level. In recent weeks, DOGE has found a floor at $0.105. If this level falls below it, it might indicate additional vulnerability and possibly lead to a retest of lower levels.
The 50 EMA and 100 EMA are significant resistance levels that have historically been hard for Bitcoin to breach, as the chart illustrates. At the moment, these levels correspond with important price zones that traders are keeping a close eye on. Bitcoin may be able to test the channel’s upper boundary and advance toward the $70,000 mark if it is able to decisively break above these EMAs, which would indicate strong upward momentum.
There is currently enough room for significant price movement in the trading channel that Bitcoin is moving through. But unless the 50 EMA and 100 EMA are broken, Bitcoin’s price is probably going to stay capped, with resistance levels preventing any significant advance toward higher targets. Bitcoin would not only overcome the current resistance but would pave the way for a possible rally to $70,000 if it were to successfully breach these EMAs.
Within the wedge, there is typically upward price action, but decreasing volume and a narrowing range frequently indicate a decrease in purchasing pressure. Eventually a break from this pattern might cause prices to drop sharply, reversing the previous uptrend. Ethereum’s recent gains could be in jeopardy as it trades within this potential wedge.
In the event that the pattern holds true, ETH might see a sharp decline and possibly return to earlier support levels at $2,600 or even $2,500. Given that the market has been generally bullish in the near term, this would indicate a significant shift in sentiment. Traders should keep a close eye on the volume and price movement of ETH over the next three days.
The probability of a breakdown rises if Ethereum stays inside the wedge while volume falls. But if ETH can rise above the wedge’s upper resistance line with significant volume, this bearish scenario might be avoided, and the uptrend might continue.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
