Dogecoin hits 4-month lows vs. Bitcoin — 50% DOGE price rebound now in play
Dogecoin (DOGE) pared some losses versus Bitcoin (BTC) on March 10, a day after the DOGE/BTC pair fell to its lowest level since October 2022. Can DOGE price see an extended rebound ahead?
On the daily chart, the DOGE/BTC pair reached 331 sats, up 4.75% compared to the previous day's low of 316 sats. The bounce occurred around a multi-month descending trendline, which has capped the pair's downside moves since November 2022.
Interestingly, the DOGE/BTC descending trendline appears part of a prevailing falling wedge pattern. Traditional chart analysts consider the falling wedge a bullish reversal setup, notably because of the pattern's 62% success rate in meeting its upside price targets.
In Dogecoin's case, the price is wobbling around its falling wedge's apex point, where its upper and lower trendline converge. DOGE's latest rebound from the lower trendline increases its possibility of testing the upper trendline for a breakout, as illustrated in the chart below.
The upside setup further draws support from the DOGE/BTC's daily relative strength index (RSI) with a reading of around 28. From a technical perspective, an RSI below 30 means the pair is oversold, which could prompt its price to consolidate sideways or rebound.
In the event of a breakout, DOGE/BTC can rise toward 500 sats by April, up 50% from current price levels. The upside target is measured after adding the maximum distance between the falling wedge's upper and lower trendline to the breakout point.
A decisive drop below the falling wedge's lower trendline, however, risks invalidating the whole upside setup. Instead, DOGE can drop toward 280 sats, a historical support level down, around 13% from current price levels
Such a scenario is possible given Dogecoin's
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