Dogecoin (DOGE) Consolidates Within a Symmetrical Triangle, Breakout or Decline on the Cards

Dogecoin (DOGE) has shown signs of slight recovery after a period of sideways movement since mid-April. Trading around $0.15 for most of the week

Dogecoin (CRYPTO: DOGE) has shown slight signs of recovery as it continues to consolidate within a symmetrical triangle, with one analyst anticipating a breakout or a potential decline in the coming days.

What Happened: Dogecoin has been hovering around the $0.15 mark for most of the week, showing signs of sideways movement since mid-April. Recently, the meme coin experienced a surge to reach $0.16, marking its highest price since April 14. However, despite this uptick, DOGE’s price failed to maintain a strong upward momentum.

Now, Ehsan Zeydabadi, an analyst on TradingView, is focusing on key technical patterns to predict Dogecoin’s next moves as it trades at $0.15785.

According to his analysis, Dogecoin is currently forming a symmetrical triangle pattern on the 4-hour chart. This pattern typically signals a period of consolidation, where price action moves between converging trendlines.

As Dogecoin approaches the apex of the triangle, the potential for a breakout in the coming days grows stronger.

The price had recently touched both the upper resistance and lower support of the triangle, further indicating the possibility of a breakout. Notably, Dogecoin was rejected near the resistance area several times—on April 2 at $0.166, again on April 14 at $0.166, and most recently on April 21 at $0.162.

"After breaking out of the triangle on April 21, we can pay attention to the $0.166 resistance level," Zeydabadi stated in his analysis.

If Dogecoin manages to break above the $0.166 resistance, the analyst predicts that it could rally towards $0.17830 and possibly reach $0.19401. However, if sellers take control and push the price below key support levels, Dogecoin could decline further.

Support levels to monitor in such a scenario include $0.14632 and $0.13850, with a further decline possibly targeting $0.12980.

See Also: Best Cryptocurrency Scanners

Another analyst, CryptosRus, observed that Dogecoin’s price action could be following a parallel channel pattern, similar to previous trends observed in 2017 and 2021.

These parallel channels have historically signaled significant price moves. For instance, in 2021, Dogecoin experienced a surge from $0.002 to levels around $0.7 as it broke out of a channel.

If this pattern repeats, the analyst believes that we could witness a major upward swing in the price. This could push Dogecoin towards a target of nearly $12.

Finally, focusing on Dogecoin’s long-term chart, another analyst, CobraVanguard, identified a potential monthly cup and handle pattern.

The cup began with a sharp rise to $0.80, followed by a lengthy correction period. After bottoming out around $0.0468, Dogecoin gradually began forming the right side of the cup.

As the cup reaches completion, the analyst anticipates that the price could form a handle, which is usually a brief pullback after the cup is finished.

The completion of the cup and handle could lead to a significant price increase, potentially reaching $0.88, the analyst concludes.

Read Next: Bitcoin, Ethereum, Monero Prices Set To Soar 1,000% As ‘New Monetary Era’ Begins, Predicts Tech Analyst