Emily Walker
Recently, Dogecoin has experienced some downward price trends. Nevertheless, the next few days may bring better prospects for the dog-themed cryptocurrency, especially after it broke out from a significant bullish chart pattern, hinting at potential price increases for DOGE.
Dogecoin’s Bullish Breakout Sparks Growth Potential
Amid recent market volatility, Dogecoin has shown resilience by breaking free from a key chart pattern, as noted by crypto analyst Trader Tardigrade. Specifically, DOGE has exited the Symmetrical Triangle formation, creating a wave of optimism among traders and investors about a possible upward move.
The analyst believes that this breakout can rejuvenate Dogecoin’s momentum, focusing attention on crucial resistance levels. With a positive market environment and increasing participation, there’s a good chance of a sustained price rally as DOGE continues its upward trajectory.
After breaking out of the Symmetrical Triangle, DOGE didn’t see an immediate price drop, which indicates a lack of selling pressure above the triangle’s upper boundary. Trader Tardigrade interprets this as a sign of strength, which could lead to further price increases.
If Dogecoin retraces to test the triangle’s upper line around the $0.44 price point, the analyst suggests this could present a prime buying opportunity, potentially yielding returns over 50% towards the symmetrical triangle target of $0.65.
On a broader scale, particularly in the monthly timeframe, Trader Tardigrade has emphasized that DOGE has been oscillating between Oversold and Overbought conditions on the macro chart, indicating significant volatility and uncertainty among market participants.
The analyst indicates that DOGE is currently shifting into the overbought zone after a period in the oversold area, projecting potential peaks between $8 and $10. He expresses optimism that DOGE will reach these levels in the current market cycle.
With $8 to $10 expected as the high in this cycle, the analyst forecasts the next support level could drop to around $1.8 and $0.8, which could offer buying opportunities in subsequent market cycles.
Will DOGE’s Decline Continue?
Dogecoin has been on a downward trajectory, marking almost a 6% decline in just one day. On Monday, the meme coin saw a decline of over 11%, leading to concerns about ongoing bearish trends.
Despite this, the downward movement could be temporary as bullish sentiment is emerging, reflected by a significant increase of over 81% in trading volume. As the market develops, it’s crucial for traders to keep an eye on essential support and resistance levels as DOGE navigates this pivotal moment.