Triangle Pattern Develops in Dogecoin – Breakout Expected
Dogecoin has been ranging between $0.15 and $0.16 for the past few days. This constricting range has developed a triangle pattern on the 4-hour candlestick chart, following a wider downtrend that started in April.
Now in recovery mode from its April declines, Dogecoin recently established a higher low—a sign of possible bullish strength. This might propel the price above the triangle's upper resistance line within the next week.
Price action has changed significantly. Following a downtrend throughout late March and early April, Dogecoin has gone into a period of consolidation in the last two weeks. The triangle pattern on the 4-hour chart indicates a balanced market—buyers are hesitant at higher prices, while sellers are reluctant to drive the price down. The back-and-forth action has rolled up volatility, positioning for a potential breakout in either direction.
Notice that Dogecoin is close to the top of the triangle. The 2.77% trading volume spike over the last 24 hours is a telltale sign of a bull breakout in progress.
Trader Tardigrade anticipates a reversal to wipe out the late March loss, after a common pattern of doubt, decline, and eventual rebound. For this bullish forecast to be validated, a powerful candle should break and close above the triangle's upper edge.
If that occurs, Tardigrade is of the opinion that Dogecoin may regain the $0.20 threshold by month end. With April's starting price at $0.166, a decisive breakout and close above $0.20 would top the month with strong bullishness.