$DOGE

DOGE

Dogecoin (DOGE) Faces Long-Term Resistance as Buyer Momentum Wanes

Dogecoin (DOGE)’s latest attempt to break above the upper line of a falling wedge pattern has been met with resistance from sellers. The increased selling pressure has pushed DOGE’s price below the 20-day exponential moving average (EMA).

As buying pressure wanes, DOGE may continue to trade within this descending channel for a bit longer.

Dogecoin Sellers Preventing a Rally Above the Upper Trendline

The daily chart readings for DOGE indicate that the meme coin has been trading within a falling wedge pattern since March. This pattern is formed by two downward-sloping trendlines, with the upper line acting as resistance and the lower line acting as support.

Although the wedge is moving downward, it is typically considered a bullish pattern, as prices often break above the upper line of the pattern once it is completed, indicating that buyers have overpowered sellers.

However, DOGE’s falling wedge has been tightening over the past few months, and the inability to sustain the rise above the upper line of the pattern suggests significant selling pressure at this level. The recent price break below the 20-day EMA also suggests bearish activity dominates the meme coin market with buying activity waning.