Dogecoin Poised for Potential Price Surge
Dogecoin (DOGE), the widely-discussed meme cryptocurrency, appears to be on the brink of a significant price increase. Recent technical analysis indicates that DOGE is possibly forming an Ascending Triangle pattern on its 4-hour chart, which could herald an imminent breakout. This bullish chart formation, coupled with a recovery from an oversold Relative Strength Index (RSI), suggests that a substantial upward movement may be on the horizon.
Analyzing the Formation of the Ascending Triangle
An Ascending Triangle is recognized as a bullish continuation pattern. It is characterized by a horizontal resistance line that connects swing highs and an ascending trendline that connects rising lows. Crypto analyst Trader Tardigrade has identified a potential Ascending Triangle taking shape on Dogecoin’s 4-hour price chart.
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In examining the chart provided by the analyst, Dogecoin’s price movement indicates a pattern of higher lows along a rising trendline while encountering resistance at $0.334 on a horizontal level. The formation of this Ascending Triangle implies that buyer momentum may be increasing, potentially leading to an upward breakout if Dogecoin surpasses the resistance level mentioned.
Furthermore, the RSI indicator for Dogecoin, found at the bottom of the chart, recently dipped into oversold territory, falling below 30%. However, it has since shown a rebound, gathering momentum, and suggesting potential room to ascend into overbought zones above 70%. This positive shift indicates increased buying pressure, supporting the possibility of a price rise to new heights.
Based on the forecasted chart trajectory, Dogecoin’s price could potentially surge to between $0.355 and $0.360 if it manages to break past the Ascending Triangle resistance at $0.334. However, if the price is rejected at this resistance, a retest of the ascending trendline may occur before another breakout attempt.
Future Outlook for Dogecoin
Despite recent reports from CoinMarketCap indicating a 6% price decline over the past week, Dogecoin remains steadfast in its pursuit of reaching new highs beyond the $0.6 threshold. A well-known crypto analyst, known as ‘Coinvo’, has informed his audience of over 324,000 followers that a new all-time high for Dogecoin is on the horizon.
The analyst shared a comprehensive chart detailing DOGE’s price movements over several years on a weekly timeframe. He highlighted two key resistance levels that suggest the meme coin may soon achieve a new all-time high (ATH).
The first resistance level, $0.015, was surpassed in early 2021 during the previous bull market, resulting in a parabolic price increase for Dogecoin. The second resistance level, $0.6, marks Dogecoin’s ATH in 2021, a level that the current price seems to be approaching once again.
Currently trading at $0.33, Dogecoin has undergone a lengthy period of downtrend and consolidation between 2022 and 2023. Based on historical patterns, the meme coin’s price could be nearing its previous peak as it follows a similar bullish path as observed during the 2021 bull run.
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