Dogecoin (DOGE) could be on the verge of an explosive price rally, as recent technical analysis reveals that the popular meme coin may be forming a distinctive Ascending Triangle pattern on its 4-hour chart. This bullish continuation pattern, combined with a rebound from an oversold Relative Strength Index (RSI), suggests that a breakout could occur anytime soon.
Dogecoin Eyes Breakout As Ascending Triangle Forms
An Ascending Triangle is typically seen as a bullish chart pattern, formed by a horizontal resistance line connecting swing highs and a rising trendline connecting lower lows. Interestingly, a crypto analyst, Trader Tardigrade, has identified what appears to be an Ascending Triangle forming on the Dogecoin price chart in the 4-hour timeframe.
Related Reading: Dogecoin Price Is Retesting The Apex Of The Ascending Triangle, Time To Buy Or Sell?
Analyzing the analyst’s presented chart, Dogecoin’s price action shows a series of higher lows along an ascending trendline while facing resistance at $0.334 on the horizontal level. This Ascending Triangle formation suggests that buyers may be gaining strength, potentially leading to a breakout to the upside if the meme coin breaches the above resistance level.
Notably, the lower part of the chart shows that Dogecoin’s RSI indicator recently entered oversold territory, dropping below 30%. The RSI has since rebounded and is gaining significant momentum, with indicators suggesting it may have room to surge towards overbought zones above 70%. This positive shift in momentum indicates a steady increase in buying pressure, supporting the possibility of a Dogecoin price appreciation to new highs.
Based on the chart’s forecast, DOGE’s price could skyrocket toward the range between $0.355 and $0.360 if it successfully breaks above the Ascending Triangle resistance at $0.334. Conversely, a rejection at this resistance level could lead to a retest of the ascending trendline before another breakout attempt.
What’s Next For DOGE?
Despite reports from CoinMarketCap highlighting a price decline of over 6% in the past week, Dogecoin remains resilient, aiming for new highs above the $0.6 mark. A prominent crypto analyst, identified as ‘Coinvo’, has announced to his over 324,000 followers that a new Dogecoin all-time high is imminent.
Related Reading: Dogecoin Price Prediction: Can DOGE Touch $1 This Cycle? Analyst Forecasts When You Should Buy And Sell
The analyst shared a detailed chart illustrating the DOGE price action over a multi-year period on a weekly timeframe. He highlighted two primary resistance levels, which suggests that the meme coin could rise to a new ATH soon.
The first resistance level, $0.015, was broken in early 2021 during the previous bull run, leading to a parabolic price surge in Dogecoin. The second resistance level, $0.6, represents Dogecoin’s all-time high in 2021, which its current price looks to be approaching again.
DOGE is currently trading at $0.33, having experienced a prolonged downtrend and consolidation between 2022 and 2023. Based on historical trends, the meme coin’s price could be nearing its previous peak, as it follows a similar bullish trajectory as the 2021 bull run.
Featured image from Unsplash, chart from Tradingview.com
