- Leading meme coins such as Dogecoin (DOGE), Shiba Inu (SHIB) and Pepe Coin (PEPE) experienced a 5-6% price drop in the last 24 hours.
- Dogecoin’s price rebounded sharply from the $0.915 support, gaining 57% before facing resistance at $0.143 and retracing by 13% to trade at $0.124.
- If sustained selling continues, DOGE price could retest the $0.1 psychological level and support timeline.
The early July correction in the cryptocurrency market is being perceived as a temporary pullback, allowing the bullish momentum to recharge before the next leg up.
However, meme coins, known for their rapid price movements, are experiencing a significant surge in selling pressure as the broader market undergoes a correction.
Over the past 24 hours, leading meme assets such as Dogecoin (DOGE), Shiba Inu (SHIB), Pepe Coin (PEPE), and BONK have witnessed a 5-6% decline in their prices.
Investors are now faced with the question of whether this pullback presents a selling opportunity or if holding for a potential rebound is a more prudent strategy.
Dogecoin Price Performance Analysis
Amidst the July market recovery, Dogecoin’s price staged a sharp rebound from the $0.915 support level, showcasing the resilience of the meme coin. This renewed recovery propelled the asset by an impressive 57%, pushing it to challenge the upper boundary of the channel wedge pattern at $0.143.
However, the overhead resistance, coupled with the recent market sell-off, has caused the DOGE price to retrace by 13%, currently trading at $0.124. Consequently, the market capitalization of the largest meme coin in the cryptocurrency world has decreased to $18.14 billion.
In theory, the falling wedge pattern is characterized by a steady downtrend between two converging trading pairs, which persists until buyers accumulate sufficient momentum to trigger an upside breakout.
The recent reversal from the upper boundary suggests that the correction trend is likely to extend, with sellers maintaining a dominant position for the time being.
If the selling pressure persists, a bearish reversal within the wedge pattern could lead to a decline of over 20% in the DOGE price. This would result in a retest of the critical $0.1 psychological level and the support timeline currently in action.
However, it is important to note that the falling wedge pattern typically indicates the maturity of a downtrend. As the broader market remains bullish, Dogecoin buyers could mount a counterattack at the $0.1 level and attempt to breach the upper boundary of the wedge.
A successful bullish breakout from the wedge pattern would serve as an early signal of a trend reversal, potentially fueling a rally targeting the $0.228 peak.
