Emily Walker
Dogecoin’s price has recently broken free from a distinct Ascending Triangle formation, indicating it may be preparing to reach another significant milestone. Despite facing challenges in breaking past resistance levels, Dogecoin (DOGE) has shown strong persistence and aims for the $1 mark.
Upcoming Target for Dogecoin Price Set at $0.56
On December 20, well-known cryptocurrency trader Rekt Capital shared insights on X (previously Twitter) regarding Dogecoin’s potential upward movement following its breakout from the Ascending Triangle pattern. A breakout in this context typically means that the cryptocurrency’s price has surpassed a crucial resistance line.
An Ascending Triangle is a notable bullish formation frequently seen during price uptrends, suggesting the continuation of a cryptocurrency’s price increase. This pattern is characterized by a horizontal resistance line that the cryptocurrency struggles to breach, alongside an upward-sloping trend line where the price produces progressively higher lows.
According to Rekt Capital’s analysis, after a significant spike above $0.35, Dogecoin started forming an Ascending Triangle pattern. Throughout this phase, Dogecoin faced fluctuating volatility and price variations as it tried to establish stability above the $0.4 resistance threshold.
Now that Dogecoin has effectively surpassed $0.4 and is trading around $0.43, Rekt Capital believes the coin is poised for another significant increase. The target price identified is $0.569, representing a 32.33% rise from the current price.
Rekt Capital further remarked that following a breakout from an Ascending Triangle, it is common for the price to return to the breakout level for a retest. The breakout level for this Dogecoin pattern is located between $0.4 and $0.45, based on the price chart analysis.
The analyst also pointed out the possibility of a post-breakout retest for Dogecoin. This could indicate that the price may retreat back to the breakout level but not drop below it, thereby confirming a new support zone. While this is not guaranteed to occur, it is considered a healthy sign, reinforcing the legitimacy of the Ascending Triangle breakout.
Anticipating Significant Price Movements for Dogecoin
Another crypto analyst, Bluntz, also shared his thoughts on Dogecoin’s successful breakout from its recent three-week consolidation around the $0.4 resistance. He predicted a “violent” upward movement for Dogecoin, similar to the rapid price surge witnessed earlier this month.
Presenting a price chart, he illustrated that Dogecoin is on a trajectory toward a swift price increase reaching $0.9. This target is becoming increasingly attainable as it nears the much-anticipated $1 price point that many analysts are forecasting for Dogecoin.