Dogecoin is consolidating within a symmetrical triangle pattern, and analysts suggest that a decisive move may appear soon.
In the past 24 hours, the leading meme coin has moved within a range of $0.16 to $0.22, with the current recorded price at $0.17.
Depending on the direction of the breakout, analysts currently forecast either a strong breakout of 60% or a prolonged increase to $5.
Dogecoin Forms Symmetrical Triangle
Ali Martinez, a cryptocurrency analyst, notes that Dogecoin's price is approaching a critical inflection point. His chart shows a symmetrical triangle pattern formed from declining resistance levels since November 2023 and rising support levels since October 2023.
The analyst stated that a daily candle closing outside the range of $0.16 to $0.22 is likely to confirm the next direction of the trend.
This triangle pattern has historically been associated with high-volatility breakouts. Ali predicts that the price will fluctuate by 60% relative to the breakout position.
A close above $0.22 could push Dogecoin's price up to $0.35, while a drop below $0.16 could lead to a decline toward the support zone of $0.10.
This area has taken quite a few months to consolidate, and a breakout could occur quite soon.
Reduced volatility is a characteristic of the pattern before price surges; thus, the tightening range is also a sign of decreasing volatility.
The confirmed breakout has left investors anxious as momentum indicators show a neutral but still increasing trend.
Bullish forecasts indicate that Dogecoin's price could reach $5
Furthermore, CryptoELITES has provided a more ambitious perspective by forecasting a potential price target for Dogecoin at $5.
Triangle consolidation phases have occurred, as shown in the posted chart, and each consolidation has been followed by a significant price increase.
According to this analyst, the price of DOGE is in the early stage of a fourth identical pattern, potentially reflecting previous explosive breakout phases.
This formation suggests that Dogecoin's price could rise by thousands of percent if this pattern repeats. However, such a move will depend on retail demand, macroeconomic conditions, and new activity in the cryptocurrency market.
At the current price, a rally to $5 would require a growth of over 2,800%, which is highly speculative but not entirely unrealistic.
CryptoELITES focuses on the stability of models, asserting that such precedents existed before Dogecoin's historic price surge.
Short-Term Ascending Triangle Provides Local Support
Meanwhile, Trader Tardigrade observes an ascending triangle developing on the hourly timeframe, with resistance at around $0.172 and rising support. This short-term setup indicates that Dogecoin's price could break above $0.1725 if this pattern holds.
Bullish triangles typically occur alongside increasing volume. In the case of a breakout, it could trigger momentum for a larger triangle on the daily chart.
The analyst also presented a scenario of rejection and potential retest, where the price of DOGE may dip slightly before attempting a breakout.
In both scenarios, the trend indicates increasing pressure, and as the lows rise, it signals that buyers are gaining strength.
DOGE Must Maintain Support Level of $0.16
Despite bullish setups, Dogecoin's price must hold the support level of $0.16 to avoid a breakdown. A daily close below this price could invalidate bullish patterns and lead to a correction down to $0.115. Modest trading volume implies that a breakout in either direction may face challenging follow-through.
The long/short ratio for both Binance and OKX is currently above 1.90, meaning that most traders are betting on a positive scenario. However, until Dogecoin's price confirms a breakout above $0.22, caution is still needed. The daily RSI is in the neutral zone, reflecting a lack of momentum until a breakout occurs.
⚠️Disclaimer: The price of digital assets is subject to various market risks and price volatility. You should only engage with products that you belong to and understand the associated risks. You should carefully consider your investment experience, financial situation, investment goals, and risk tolerance.
