DOGE is forming higher lows and a narrowing price range beneath a descending trendline, often a precursor to a breakout.
Despite a 4.66% dip, 24-hour trading volume surged 8.41% to $886M, hinting at growing investor interest.
A breakout above the trendline could trigger a move to retest the $0.18–$0.20 zone, a key area of past resistance.
Dogecoin (DOGE) may be setting the stage for a major price move, as it coils beneath a key descending resistance trendline, hinting at an impending breakout. Despite a 4.66% daily dip, analysts like Trader Tardigrade point to bullish accumulation patterns that could propel the meme coin toward the $0.18–$0.20 range if momentum builds.
DOGE’s Compression Pattern Signals Accumulation Phase
According to Trader Tardigrade, Dogecoin ($DOGE) is showing signs of potential bullish momentum as it coils beneath a long-standing descending resistance trendline on the 4-hour chart. The technical pattern suggests accumulation, as indicated by the narrowing price range and the formation of higher lows approaching the resistance. This setup often precedes a breakout, particularly when a cryptocurrency compresses against a trendline with increasing volume or market attention.
In the current scenario, the term “coiling up” is used to describe the tightening price action observed in the chart, highlighted just beneath the resistance line. An upward breakout of the trendline may give Dogecoin an upward momentum towards a new trend towards the $0.18-$0.20 former resistance points. Meanwhile, the bullish arrow shows that there may be a rally; however, traders are recommended to check the volume confirmation and candlestick dynamics at the trendline to confirm the breakout. Such an arrangement can be a very big turning point for $DOGE in case the market is in agreement.
Market Reaction Mixed as Price Falls but Volume Climbs
In the past 24 hours, Dogecoin (DOGE) has experienced a notable decline, dropping 4.66% to $0.1589, as per data from CoinMarketCap. The cryptocurrency that earned its name of the meme also experienced a substantial price decline, as its high during the day was around 0.1662 dollars, and the price has decreased ever since.
However, following the price decline, the trading volume increased by 8.41% to 886 million dollars, which inflated the market activities. The market capitalization of Dogecoin presently stands at 23.81 billion, while the supply and circulating supply are 149.84 billion Doge. The fully diluted valuation (FDV) remains aligned with the market cap, and the coin continues to exhibit high liquidity. However, investor sentiment may be dampened by the persistent bearish trend visible in today's chart.
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