The price of Dogecoin has been swinging between $0.15 and $0.16 for several days, and this narrow range has led to the formation of a triangular pattern on the 4-hour candlestick chart, following a larger negative corrective movement that began in April.
Dogecoin shows signs of recovery from April losses, as the recent higher low indicates the possibility of a bullish movement that could push the price to break through the upper trend line of the triangle in the coming week.
Analyses indicate that the price behavior shifted from a downward trend in late March and the first week of April to a phase of consolidation in the past two weeks.
The triangular pattern on the four-hour frame reflects a state of caution among buyers and sellers. Since April 15, buyers have been hesitant to buy at higher levels, and sellers are unwilling to push the price down, which has led to a narrowing of the price movement range. This compression in volatility could explode in either direction.
The chart shows that the meme coin is approaching the apex of the triangle, with trading volume increasing by 2.77% in the past 24 hours, indicating the possibility of a bullish breakout.
Trader Tardigrade predicted a bullish wave that would erase the losses Dogecoin recorded in late March, following the usual pattern: a state of hesitation, then a drop, followed by a rise.
To confirm this expected rise, a strong bullish candle must close above the upper trend line of the triangle. Trader Tardigrade expects that Dogecoin may regain the $0.20 level before the end of the month if this breakout occurs.
Dogecoin started April at a level of $0.166, and if it successfully breaks upward and maintains above $0.20, it will be a strong end to the month for the currency.
