Dogecoin Price Analysis: Bullish Patterns and Market Trends
In the last 24 hours, Dogecoin has experienced a notable dip, testing the support level at $0.33. This trend is part of a broader downtrend observed over the past two days, where Dogecoin faced resistance just below the $0.40 mark, coinciding with Bitcoin’s inability to surpass the $100,000 threshold.
Despite this recent downturn, technical analysis suggests a potential bullish outlook for Dogecoin. Renowned crypto analyst Trader Tardigrade has characterized the recent dip as a retest within a bullish framework. The analyst suggests that Dogecoin is merely revisiting the apex of an ascending triangle, a key pattern in technical analysis indicating potential upward momentum.
Dogecoin Price Retesting the Ascending Triangle
Advertisement Banner
Trader Tardigrade’s analysis focuses on the 4-hour candlestick timeframe for Dogecoin, tracing its price movements since mid-December. The current retest of the ascending triangle’s apex is crucial, as this pattern often signals upward price movement. A successful retest could propel Dogecoin upwards, while a failure might lead to a bearish breakdown, challenging the optimistic forecast.
This scenario draws attention due to its similarity to a previous ascending triangle breakout in November 2024. Back then, Dogecoin breached the triangle’s upper boundary around $0.14, leading to a surge to $0.17. After a brief decline, the price successfully retested the breakout point, resulting in a substantial rally to multi-year highs.
Is It Time To Buy or Sell Dogecoin?
Given the current market dynamics, Trader Tardigrade advises against shorting or selling Dogecoin at this juncture. The parallels between the current price action and the November 2024 chart patterns reinforce the possibility of a significant price uptrend. However, the outcome of the ongoing retest remains pivotal in determining Dogecoin’s future trajectory, whether it will mirror last year’s bullish path or face a downturn.
Market sentiment also leans towards a favorable outlook for Dogecoin, potentially heralding a bullish phase by the end of January. The crypto sector’s optimism is partly driven by anticipated policy reforms under President-elect Donald Trump’s administration, which are expected to bolster the cryptocurrency landscape.
As of now, Dogecoin is priced at $0.3383, marking a 2.5% decline in the past 24 hours. Despite this short-term decrease, Trader Tardigrade predicts a potential rebound from the ascending triangle’s apex, which could spark a new upward trajectory. The analyst has set a price target of $0.95 for Dogecoin, which, if realized, would establish a new all-time high for the cryptocurrency.
