Dogecoin price fell by 2.5% on Tuesday, Aug. 26, erasing most of the gains made late last week after Jerome Powell’s dovish statement.
Summary
- Dogecoin price crashed by ~7% on Monday as the crypto market retreated.
- The decline happened as investors waited for more macro data from the United States.
- The weekly chart suggests that the DOGE rally is over as it formed a bearish pennant pattern.
Dogecoin (DOGE) token slumped to a low of $0.2178, down by 15% from its highest point this month. It is hovering near its lowest point since Aug. 22.
The ongoing DOGE price crash happened as the recent enthusiasm about interest rate cuts faded. Bitcoin (BTC), most altcoins, and the stock market all pulled back, erasing the recent gains.
This weakness is attributed to market participants who are waiting for the incoming data to predict the next Fed action. The U.S. will publish its closely watched Personal Consumption Expenditure report on Friday.
This is a key inflation figure that measures changes in prices in rural and urban areas. It is the Fed’s preferred measure of inflation. The U.S. will then publish the nonfarm payrolls data next week, which will inform the Fed’s decision on interest rates.
Some analysts predict that the ongoing Dogecoin price crash will be brief. In an X post, Ali Martinez used the four-hour chart to predict that it is having the final dip before rebounding. He expects that the DOGE price may jump by 30% from here.
A potential bullish catalyst for the DOGE price will be the approval of several exchange-traded funds by the Securities and Exchange Commission, which could come by the end of the year. Such funds would have some modest demand from American investors.
Dogecoin price technical analysis
The weekly chart suggests that the recent Dogecoin price rally could be ending. It has formed a symmetrical triangle pattern whose upper and lower sides connect the key levels since February this year.
DOGE has formed a bearish pennant pattern, which is made up of a vertical line and a symmetrical triangle. In most cases, a bearish breakout happens when the two triangle lines are nearing their confluence.
Dogecoin price remains below the 50-week and 100-week Exponential Moving Averages, a sign that bears are in control.
Therefore, the Dogecoin price will likely have a strong bearish breakout, potentially to the key support level at $0.1360, its lowest level in March this year.
