There is a high probability that the cryptocurrency Dogecoin will break upward from this symmetrical triangle.
Dogecoin ($DOGE ), the most valuable memecoin in the market, shows positive signals for its investors, forming a structure with bullish potential based on technical analysis.
In the Dogecoin community on Reddit, where investors share their expectations, one user shared their optimistic vision for the future of DOGE.
The following price chart of DOGE, shared by the user, reveals several promising patterns. The first is a cup and handle pattern (in purple), characterized by a U-shaped curve followed by a small sideways or downward correction, indicating a prolonged price consolidation before a possible continuation of the trend.
In the case of the memecoin, the 'handle' of this pattern forms a symmetrical triangle, indicating that the price is approaching a breakout. If it breaks the key resistance of $0.22849, the asset could initiate a new bullish leg.
Additionally, a descending wedge (in blue) is identified, a bullish reversal pattern formed by two converging descending lines, reflecting a decrease in selling pressure and a bullish price target.
An inverse head and shoulders formation (in yellow) also appears.
This is a reversal pattern that indicates a market bottom and the start of an upward movement whose target has already been reached.
The technical outlook is complemented by the presence of a double bottom (in red), a pattern that occurs when the price reaches a support level twice in a relatively short period of time, bouncing back on both occasions. This pattern, with a price target of $0.22, confirms a significant demand level.
Currently, Dogecoin is trading at $0.21, 71% below its all-time high of $0.71 reached in 2021. With a market capitalization of $32 billion, it ranks ninth among cryptocurrencies by market cap.