For the last five months, the price of Dogecoin (DOGEUSD) has been moving inside a descending wedge, a pattern that is frequently linked to future breakouts.
Dogecoin Macro Growth
The meme currency is about to break out of this pattern, but a big price increase might take time to happen. Even during a breakout, profits may be constrained due to several market factors.
There are indications of weakness in Dogecoin's macro growth, particularly when examining technical signals such as the Average Directional Index (ADX). The ADX indicates that the DOGE active upward trend has weakened and is currently very weak. It is usually challenging for a cryptocurrency to maintain its momentum upward when the ADX is weak, which makes it hard for DOGE to maintain any positive gains.
Given the waning uptrend, not even a rupture from the falling wedge would bring big gains. Dogecoin's potential to rise could be limited if the market isn't strong enough to help it take advantage of the anticipated price spike.
