Dogecoin Price at Risk of 20% Drop, Musk & X Could Spark Rebound

• Dogecoin is currently consolidating in a bear flag pattern, with potential to decrease by 20% if the price breaks below its lower trendline.
• A break above the upper trendline and 200-4H EMA could invalidate the bearish setup and increase prices by 12% by end of September.
• Keep an eye out for Elon Musk and X updates, as they can influence prices violently in either direction.

Dogecoin Price Consolidation Paints Bear Flag Pattern

Dogecoin (DOGE) prices have recently been in consolidation mode, painting a classic bearish continuation pattern on its four-hour chart called “bear flag”. This pattern typically resolves after the price breaks out of its range to the downside, potentially leading to a 20% decline from current levels.

Upside Potential Available If Flag Breaks Above Upper Trendline

On the flip side, breaking above the upper trendline of the flag as well as Dogecoin’s 200-4H exponential moving average (200-4H EMA) near $0.0065 could invalidate this setup and lead to a 12% price rally by the end of September.

Watch Out For Elon Musk & X Updates

Price behaviors can change dramatically due to billionaire entrepreneur Elon Musk’s prospects of adding Dogecoin payment options on his social media platform X (formerly Twitter). Traders are advised to keep an eye out for any potential crypto wallet or payment option integrations that may occur on X – their impacts are unpredictable and could cause prices to move violently in either direction.

Key Takeaways

• Dogecoin is currently consolidating in a bear flag pattern, with potential to decrease by 20% if the price breaks below its lower trendline.
• A break above the upper trendline and 200-4H EMA could invalidate the bearish setup and increase prices by 12% by end of September.
• Keep an eye out for Elon Musk and X updates, as they can influence prices violently in either direction.