Dogecoin (CRYPTO: DOGE) is currently pushing the limits of a Falling Wedge formation, a prominent crypto analyst has observed.
What Happened: Pseudonymous analyst Rekt Capital told his 333,700 followers on Twitter that If DOGE succeeds in breaking out of this trend, it could be in for a big move.
— Rekt Capital (@rektcapital) January 22, 2023
See More: Best Crypto Day Trading Strategies
The Falling Wedge Pattern occurs when the digital asset's price is in the overall bullish territory before experiencing a corrective pull-back. During this pull-back, two converging trend lines are drawn as a form of consolidation.
This pattern can be identified as a signal that the price may break out of the current trend, as the consolidation part ends when the price action breaks.
Dogecoin’s run-up on Sunday came despite the Bitcoin (CRYPTO: BTC) rally losing steam. The rally could be a technical move as the crypto approached the near-term resistance. The upside has not been accompanied by a pick-up in volume, probably due to the typical light-volume trading witnessed during the weekend. A move past another resistance area around $0.112 could lend some more credibility to the rally.
Price Action: At the time of writing, DOGE was up 6% in the last 24 hours, trading at $0.089, according to Benzinga Pro.