Emily Walker
Dogecoin (DOGE) is poised for a potential price surge, as recent technical analysis indicates it might be forming a bullish Ascending Triangle pattern in its 4-hour chart. The combination of this pattern and a recovery from an oversold Relative Strength Index (RSI) points towards a possible imminent breakout.
Potential Breakout for Dogecoin with Ascending Triangle Formation
An Ascending Triangle is recognized as a favorable chart pattern characterized by a horizontal resistance line connecting swing highs and an upward trendline connecting lower lows. Notably, a crypto analyst known as Trader Tardigrade has identified a forming Ascending Triangle within the Dogecoin price chart on the 4-hour timeframe.
Examining the analyst’s chart, it shows that Dogecoin’s price is making higher lows along the ascending trendline while facing a resistance barrier at $0.334. This pattern indicates that bullish sentiment among buyers is strengthening, which could result in an upward breakout if Dogecoin surpasses the resistance level.
Additionally, the lower part of the chart shows Dogecoin’s RSI recently dipped below 30%, indicating an oversold scenario. However, the RSI has since recovered and is gaining momentum, suggesting it may advance towards overbought territory, surpassing 70%. This positive change in momentum hints at increasing buying pressure, supporting the prospect of a price rise for Dogecoin.
Based on chart projections, if DOGE manages to break above the Ascending Triangle resistance at $0.334, its price could surge to between $0.355 and $0.360. However, if it fails to break through, it may return to test the ascending trendline before another attempt to climb higher.
Future Prospects for DOGE
Despite reports from CoinMarketCap indicating a price drop of over 6% in the last week, Dogecoin continues to show resilience as it strives for new highs above $0.6. A well-known analyst, ‘Coinvo’, has predicted to his 324,000 followers that an all-time high for Dogecoin is approaching.
The analyst provided insights on a detailed chart showing DOGE price movements over several years on a weekly scale, identifying two key resistance levels that suggest an impending rise to a new all-time high.
The first resistance level of $0.015 was breached during the early 2021 bull run, resulting in a sharp increase in Dogecoin’s price. The second level, located at $0.6, marks Dogecoin’s all-time high from 2021, which it appears to be nearing again.
Currently, DOGE trades at $0.33 after undergoing a prolonged downtrend and consolidation throughout 2022 and 2023. Historical trends indicate that the meme coin may be approaching a previous peak, mirroring the bullish patterns observed during the 2021 bull run.