With a triangle pattern determining Dogecoin’s fate, will the bulls overpower the incoming selling pressure for a quick rally to $0.50?
A surge in Bitcoin’s buying activity has resulted in a new all-time high, but meme coins are struggling to initiate a rally. Dogecoin is currently stuck at the crucial level of $0.40, maintaining a sideways trend, and has fallen under a market cap of $60 billion.
Over the past month, the price has seen a positive growth of 12.76%. Amid the compression of price trends, Dogecoin is nearing a critical crossroads, hinting at a potential breakout rally.
Dogecoin Triangle Holds The Bullish Fate
The price action of Dogecoin showcases a symmetrical triangle formation on the 4-hour chart. This pattern signals indecision but also suggests that a decisive move is imminent. Dogecoin’s price is testing the lower support trendline near the 23.60% Fibonacci level at $0.395.
With a rejection at the lower price levels, Dogecoin is maintaining dominance above the psychological $0.40 mark. Thus, it remains at a potential bounce-back point within the triangle pattern.
Within the triangle, Dogecoin’s price is showing a sideways shift in momentum, trading between key levels. It struggles to break above the 38.20% Fibonacci level at $0.4098. This consolidation phase reflects coiling momentum, signaling that a high-momentum rally could follow a breakout.
The 4-hour RSI shows a minor bullish divergence with the current lower price rejection. This bullish signal increases the likelihood of a breakout rally. However, the resistance at the 38.20% Fibonacci level and the struggle to maintain a close above it remain important thresholds to watch.
DOGE Price Targets
If the broader market recovers, a bullish comeback in Dogecoin could trigger a meme coin rally. As a result, a triangle breakout could be imminent, potentially leading to the formation of a new 52-week high.
Based on Fibonacci levels, the breakout rally could target the 1.272 and 1.618 Fibonacci extensions at $0.4952 and $0.5284, respectively. Thus, a triangle breakout could see Dogecoin reclaim the $0.50 psychological level.
If the market closes bearishly below the local support trendline or the 23.60% Fibonacci level at $0.3958, the downside risk could be around 6.28%, testing $0.3732. A bearish breakdown would confirm weakness, and in case of an extended pullback, the price could dip to the $0.34 mark, resulting in a 15% pullback.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
