An analyst explained how Dogecoin may be preparing for a 60% price volatility. Below is the range that could determine the direction of the breakout.

Dogecoin Is Approaching the End Point of the Triangle Pattern

In a new post on X, analyst Ali Martinez discussed how Dogecoin is currently viewed from a technical analysis (TA) perspective. Below is the chart shared by the analyst showing DOGE's price trend over one day.

As shown in the chart, the daily price of Dogecoin has traded within a triangular channel. The triangle is a TA pattern that forms whenever the price of an asset observes consolidation between two converging trendlines.

The upper line of the pattern is likely to provide resistance for the price, while the lower line supports. A breakout of either line could signal a continuation of the trend in that direction.

There are several types of triangles, with some common types being Symmetrical, Ascending, and Descending variants. The direction of the trendlines determines the type of triangle.

In a symmetrical triangle, the lines converge at nearly equal and opposite slopes. This means that when the price moves within the pattern, both upward and downward volatility decrease evenly.

However, for the Ascending and Descending versions, there is a bias towards upward or downward. In the former version, the upper trendline is parallel to the time axis while the price gradually creates higher lows. Similarly, the latter version involves lower highs with a flat support level.

From the chart, it is clear that the Triangle pattern that Dogecoin has been moving within for the past few months is similar to the Symmetrical Triangle pattern, but has a slight downward bias.

It can also be seen that DOGE is approaching the end of the triangle. Overall, the likelihood of a triangle breakout occurs more often when the asset approaches the peak, as the consolidation range tightens in this area.

Considering that Dogecoin may be in this area, its spring is likely ready to unleash. Based on the pattern forming in the daily price, the analyst noted that DOGE appears to be ready for a 60% upward move.

Regarding how the breakout will occur, that naturally depends on the path that the memecoin escapes the triangle. Martinez noted that "All you need to do is wait for the daily close to be outside the range of $0.16 to $0.22 to determine the direction of the trend."