The price of Dogecoin has recently experienced a notable correction after a period of significant growth. This surge in value saw Dogecoin reaching $0.426, a milestone not seen since the bullish market of 2021. However, as is typical after such rapid increases, the current trend has shifted towards a temporary correction, with some investors opting to take profits or exit their positions. Over the past 24 hours, Dogecoin’s value has decreased by 8.5%, and it has dropped 13% since hitting the $0.426 mark.
Understanding the Symmetrical Triangle Pattern
Interestingly, this correction was anticipated by a cryptocurrency analyst on the social media platform X. According to Kevin, the analyst, Dogecoin’s recent price activity has resulted in the formation of a unique symmetrical triangle pattern. This pattern may indicate either a potential correction or a continuation of the upward movement.
Analyst Says Symmetrical Triangle Favors Price Correction
As Dogecoin begins to consolidate, this phase is generally seen as a precursor to the continuation of a rally. Utilizing the 1-hour candlestick timeframe, crypto analyst Kevin noted that since November 12, Dogecoin has been experiencing consolidation. This phase is marked by lower highs and higher lows, creating a symmetrical triangle shape.
Given that this pattern emerges from a bullish trend, the likelihood of breaking upwards is high. However, Kevin highlighted the increased probability of a price correction due to the daily Relative Strength Index (RSI) indicating an overbought condition, with levels exceeding 90. At the moment of his prediction, Dogecoin was trading close to $0.39. Since then, the price has seen further declines, supporting the argument for a correction.
Should the downward trend persist, Kevin identified a crucial support zone between $0.30 and $0.26, aligning with the golden pocket retracement levels. This range suggests a possible 30-40% correction from the recent peak of $0.426. He stated, “A 30-40% correction from the local top is perfectly sized for a bull market.” Despite the prevalent bullish sentiment, Kevin acknowledged in a subsequent post that the Dogecoin price might not adhere to his expectations, and the consolidation could potentially lead to a minor correction.
Moreover, he proposed the possibility that the symmetrical triangle might instead represent a bull flag pattern, typically linked to bullish breakouts. If this is accurate, the pattern could facilitate an upward breakout, potentially propelling Dogecoin’s price towards a target of $0.90.
Current State Of Dogecoin Price
As of the latest data, Dogecoin is trading at $0.37, reflecting an 8.5% decrease over the past 24 hours. Despite this downturn, Dogecoin remains poised to conclude November with the most substantial monthly gains in over three years. The upcoming days will be pivotal in determining the subsequent trajectory—whether the consolidation phase culminates in a significant correction or heralds a rally to unprecedented highs.
