At the time of writing, Dogecoin is trading at 0.1739, strangely just above a major support level of 0.1738.
A symmetrical triangle pattern indicates impending volatility as DOGE approaches the top of price consolidation.
Any bullish trend will require some resistance at the price of $0.1785 to overcome; otherwise, DOGE may be pushed back to $0.12 to $0.13.
DOGE dogecoin is nearing a point of discovery on the daily chart, with technical indicators indicating that the coin is on edge, and this could lead to a significant move. The current price of the asset is now at 0.1739, which is 1.4 % lower than 24 hours ago.
Market data shows that DOGE is trading slightly above a critical support level at $0.1738. Experts note that failure to maintain this support can lead to a downward correction of up to 30%, pushing the token towards the $0.12–$0.13 area.
Price Compression Signals Imminent Volatility
Chart study shows Dogecoin has been in a symmetrical triangle pattern since mid-March with a series of higher lows and lower highs. Convergent trend lines are typically a sign that the price is preparing to consolidate before breaking out or breaking down. The triangle is near its apex, and market analysts believe the breakout is imminent.
The recent daily candle closed just above the triangle’s lower boundary and at the key Fibonacci level of 0.5 ($0.1738). This area is being closely monitored as it serves both as a historical support and a mid-point within the consolidation range. A breakdown below this line may invalidate the triangle pattern and open the door to steeper losses.
Fibonacci Levels Signal Key Price Zones
Fibonacci retracements drawn from the annual high to the recent low uncover several important zones. Resistance is located near $0.1785, which also happens to be the 61.8% retracement level. A close above this level on the daily chart can ignite an attempt to $0.21 or even $0.25, but a shift in the current neutral to bearish momentum is necessary for such an attempt.
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In contrast, a violation of less than the next support of 0.168 may trigger a sell-off. The estimated bearish target is in line with the lower Fibonacci extension range of $0.1280, which would represent a 30% loss.
DOGE Awaits Breakout as Market Sentiment Stalls
Dogecoin's price action appears to be tracking broad market sentiment fairly closely, with Bitcoin's recent indecision at its all-time highs working in favor of DOGE's dampened volatility. Traders will probably continue to exercise caution until a clear breakout occurs in either direction, monitoring volume breaks and trendline reactions carefully. The market will more than likely respond quickly to a conviction candle outside of the current triangle, and thus, the next few sessions are likely to be critical for the near-term direction of DOGE.
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