• Dogecoin has formed a bear flag pattern, which could lead to a 20% drop in price.
• Elon Musk and his X platform could influence prices in either direction.
• Traders should watch for updates from Elon Musk and X for potential crypto wallet or payment option integrations.
Dogecoin Price Consolidation Paints Bear Flag Pattern
Dogecoin has been consolidating in recent days, painting a classic bearish continuation pattern on its four-hour chart known as the “bear flag”. This indicates that DOGE price is likely to fall by up to 20% if it breaks below the lower trendline of this flag.
Elon Musk Could Influence Prices
Billionaire entrepreneur Elon Musk and his social media platform X (formerly known as Twitter) may have an influence on Dogecoin’s price movements, with possible announcements related to crypto wallets or payment option integrations having the potential to move prices violently in either direction. Traders should monitor X updates for any such news.
Upside Target If Flag Breaks Upwards
If the DOGE price is able to break above the upper trendline of the bear flag and its 200-4H exponential moving average near $0.0065, it could invalidate the bearish continuation setup and target a 12% rally towards $0.069 by September 2021.
Flag Breakdown Could Result In 20% Decline
If DOGE breaks down from its current levels, it risks falling towards $0.049 over Q3/2023 – representing a decline of about 20%.
Dogecoin price consolidation in recent days has painted a bear flag pattern with an estimated downside target of 20%. Elon Musk and X could still influence prices in either directions, while traders should keep watching for updates regarding crypto wallets or payment options integrations on X’s platform.