Dogecoin drops by 4.68%, testing the $0.25 support zone. With the price trapped within a triangle pattern, is there a breakout opportunity for DOGE to hit $0.30?
As top cryptocurrencies witness a pullback, the meme coin market capitalization drops by 4.5% to hit $67.4 billion. Among the top meme coins, Dogecoin is down by 4.68%, putting the $0.25 psychological support at risk.
As the chances of Bitcoin revisiting its $90,000 support increase, the highly volatile meme coins are on the verge of taking a major dip. Will this downfall crash Dogecoin prices under $0.20? Let’s find out.
Dogecoin Price Trend Trapped in a Triangle
On the 4-hour chart, Dogecoin’s price action shows a long-established bearish trend. This bearish trend has resulted in a resistance trendline.
With the recent failure to break above this trendline, DOGE has retested the crucial demand zone. The price recently found support at $0.245.
Currently, Dogecoin is trading at $0.2520, with a minor price rejection near the support zone. The price action is forming a descending triangle pattern, with the resistance trendline and lower support zone.
The recent price rejection suggests that DOGE may be preparing for a bullish reversal to retest the overhead trendline. Supporting this potential rebound, the daily RSI shows a slight uptick near the oversold boundary.
Within the triangle, Dogecoin has previously staged multiple bullish reversals near the support zone, increasing the chances of a price comeback.
Will Dogecoin Bounce Back From $0.25?
Crypto analyst Ali Martinez supports the idea of a DOGE rebound. According to his recent tweet, the price action on the 4-hour chart signals a potential bullish turnaround, with a buy signal flashing on the TD Sequential indicator.
Given this bullish outlook, if Dogecoin breaks above the overhead trendline, a triangle breakout rally could result in a high-momentum move.
Based on pivot levels, this breakout rally could target the R2 resistance pivot level near the $0.30 psychological mark.
Conversely, a breakdown from the triangle could lead to support levels at the S2 and S3 pivot levels, at $0.22 and $0.19, respectively.
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.