Emily Walker
The price of Dogecoin is currently in a correction mode on the weekly chart, experiencing a drop of around 13% in the last week. While the general sentiment in the crypto market seems optimistic, Dogecoin, known as the leading meme coin, has yet to capitalize on this by surpassing the $0.4 level.
Analyzing the DOGE price chart reveals that the cryptocurrency is currently moving within an ascending triangle pattern, which could have negative implications for its future price movements.
DOGE’s Ascending Triangle: Risk or Reward?
Crypto analyst Andrew Griffiths shared insights on social media platform X, stating that Dogecoin is oscillating within an ascending triangle pattern. This formation has been evident since mid-December, with DOGE frequently bouncing off both the top and bottom trendlines of the pattern.
Griffiths points out that the ascending triangle formed by DOGE’s price can indicate both hope and peril. Historically, this pattern tends to lead to upward breakouts, but it also poses risks of sharp declines if essential support levels are breached.
While the ideal scenario would be a bullish trend, Dogecoin’s ongoing fluctuations within this pattern suggest a potential initial decline before any rally. Griffiths indicated that post-election optimism surrounding Donald Trump might boost the overall market sentiment, possibly aiding Dogecoin’s future upward movement. However, he cautioned that this optimism doesn’t guarantee immunity from the volatility stemming from its current price pattern.
Will Dogecoin Experience an Upswing from Here?
As of this writing, DOGE is valued at $0.36, showing a 2.6% increase over the past day after bouncing back from $0.34. Despite this daily gain, Dogecoin’s weekly performance remains underwhelming, with a 13.2% decrease noted over the last week. Recent price movements indicate that the meme coin has encountered repeated obstacles at a descending trendline throughout the past week.
Presently, DOGE aims to break past this downward trendline once more. A failure to do so could extend its downward price trend. Some analysts believe that Dogecoin might have reached its peak for this cycle, which could lead to a significant correction towards the $0.22 level.
Alternatively, if Dogecoin successfully breaks through the trend line, it may initiate an upward trend. According to technical analysis from crypto expert Kevin (@Kev_Capital_TA), this scenario is considered more likely for Dogecoin. He highlighted that even amidst a downtrend, DOGE remains above a crucial macro golden pocket. Nevertheless, he emphasized that this outcome largely hinges on Bitcoin’s initial bullish movement.