Dogecoin Price Drops Amid Bearish Pennant; Rally at Risk
Dogecoin price fell 2.5% on August 26, erasing late-week gains triggered by Fed Chair Jerome Powell’s dovish remarks. The Dogecoin price plunged to $0.2178, down 15% from its monthly high and near its lowest level since August 22. The broader crypto market, led by Bitcoin and most altcoins, retreated as traders await key US data: Friday’s Personal Consumption Expenditure report and next week’s nonfarm payrolls. On the weekly chart, Dogecoin has formed a bearish pennant and remains below its 50-week and 100-week EMAs, signaling a likely bearish breakout toward the $0.1360 support. Some analysts, including Ali Martinez, foresee one final dip before a 30% rebound. A potential catalyst later this year is the SEC’s approval of cryptocurrency ETFs. Traders should monitor technical levels and upcoming Fed-related data for short-term volatility and gauge long-term bullish potential.
Bearish
The bearish pennant on Dogecoin’s weekly chart, combined with a drop below both the 50-week and 100-week EMAs, points to continued selling pressure and a likely breakdown toward the $0.1360 support. Historically, similar pennant patterns in crypto have led to swift downside moves when macro catalysts (e.g., Fed data) coincide. The market’s wait for the PCE inflation report and nonfarm payrolls adds uncertainty and may delay any sustained recovery. In the short term, traders should brace for heightened volatility and potential stops around key technical levels. Over the longer term, approval of US crypto ETFs could restore bullish sentiment, but only after this corrective phase concludes.