Emily Walker
The current Dogecoin price is retreating after experiencing significant gains over the last two weeks, peaking at $0.426 for the first time since the 2021 bull market. Following such a dramatic increase, a correction is typical as some investors start to lock in profits or exit their positions. In fact, Dogecoin’s value has dropped by 8.5% in the last 24 hours and 13% from its recent high.
A interesting development noted by crypto analyst Kevin on the social media platform X suggests that the recent price movements of Dogecoin have formed a unique symmetrical triangle pattern that may result in either further correction or additional gains.
Price Correction Favored by Analyst’s Triangle Analysis
Dogecoin is currently stabilizing, a common occurrence before a possible rally continuation. As per Kevin’s observations using a 1-hour candlestick chart, this consolidation has been ongoing since November 12, marked by lower highs and higher lows which form a symmetrical triangle pattern.
Typically, when emerging from a bullish phase, a symmetrical triangle is more likely to break upward. However, the analyst points out that the likelihood of a correction is higher, especially since the daily Relative Strength Index (RSI) indicates an overbought condition above 90. At the time of this analysis, Dogecoin was priced around $0.39, and since then, its value has continued to decrease, strengthening the case for a potential pullback.
If the downward trend continues, Kevin has highlighted a significant support zone between $0.30 and $0.26, coinciding with golden pocket retracement levels, indicating a potential correction of 30-40% from Dogecoin’s recent peak of $0.426. He suggested, “That’s a 30-40% correction from the local top, which is a suitable size correction in a bull market.”
Despite the bearish outlook, Kevin acknowledged in a subsequent post that there remains a chance Dogecoin’s price could behave differently, disputing his prediction that the ongoing consolidation might lead to a major correction.
He proposed that the symmetrical triangle could actually function as a bull flag pattern, which usually suggests bullish breakouts. In this scenario, such a pattern could potentially lead to a price surge towards a projected target of $0.90.
Dogecoin’s Current Trading Situation
At this moment, Dogecoin is valued at $0.37, having fallen by 8.5% in the last 24 hours. Nevertheless, it is still on track for its best monthly performance in over three years by the end of November. The upcoming days will be critical in determining whether this consolidation phase results in a steep correction or possibly an upward trend towards new peaks.