Emily Walker
In the last day, Dogecoin has experienced a notable drop, revisiting its support level at $0.33. This downward movement continues from a 48-hour trend that saw Dogecoin struggle to maintain a level just below $0.40, coinciding with Bitcoin’s rejection of the $100,000 mark once more.
Despite this decline, technical analysis by crypto expert Trader Tardigrade suggests a bullish perspective for Dogecoin. The recent drop is viewed as a retest of a bullish configuration, where the price is merely revisiting the peak of an ascending triangle pattern.
Dogecoin Seeking Ascending Triangle Support
Trader Tardigrade’s analysis utilizes the 4-hour candlestick chart to examine Dogecoin’s price movement since mid-December. The chart reveals that Dogecoin is currently testing the peak of an ascending triangle—a bullish formation typically indicating the potential for further price increases. This phase is pivotal, as the outcome of this retest could lead to either a price rebound or a break below, negating the bullish forecast.
A particularly interesting aspect of this scenario is its similarity to a previous ascending triangle breakout recorded in November 2024. Back then, Dogecoin successfully broke through the triangle’s upper boundary around $0.14 in late October, later soaring to $0.17 before retracing to test that breakout point again. This retest was fruitful, enabling a rapid price increase that propelled Dogecoin to multiple-year highs.
Should You Buy or Sell Dogecoin?
Trader Tardigrade believes that now is not the appropriate moment to short or sell Dogecoin, hinting that a significant price movement could be imminent. The parallel charts between the present activity and that of November 2024 support the analyst’s prognosis, suggesting that history may repeat itself. The current retest warrants close monitoring, as its result will indicate whether Dogecoin can mirror last year’s bullish trend or face a downward shift.
Current market sentiment further backs the potential for Dogecoin’s price to rise again by the end of January, spurred by optimism around the upcoming crypto policy reforms from President-elect Donald Trump’s administration.
At present, Dogecoin’s price stands at $0.3383, down 2.5% over the last 24 hours. Despite this recent dip, Trader Tardigrade forecasts that a rebound from the peak of the ascending triangle may kickstart a new upward trend, with a price target set at $0.95 for Dogecoin, which would establish a new all-time high for this meme cryptocurrency.