Dogecoin, the forgotten memecoin, is about to break a big triangle
This technical analysis pattern can be considered a gigantic bullish pennant.
Other memecoins have stood out for their price rises, but DOGE is firmly in the top 10.
The price of dogecoin (DOGE), the main memecoin in the market and the eighth most capitalized crypto asset in the world, has formed a technical figure that reflects optimism. This is a large-scale triangle showing a bullish pennant.
This figure is a pattern that is distinguished in the technical analysis of price charts of an asset. It consists of a downward-sloping resistance line, exhibiting lower and lower highs, and a horizontal or near-horizontal support line.
This structure usually occurs after a strong rise that is graphed almost as a vertical line. That is why, overall, this price pattern is displayed on a chart as a triangle, which is where its name comes from.
When the price of an asset, which has formed this figure, approaches the resistance of the triangle, it suggests that demand is gaining strength. Therefore, This move indicates that a bullish breakout could be around the corner..
The price of dogecoin has formed this type of figure for three years when it rose sharply to reach an all-time high close to $0.70 (USD). Its price has fallen since then until finding solid support. And after a boost at the beginning of the year, it has returned to a downward trend that shows signs of breaking.
In the last month, DOGE price has risen twice to around $0.12, exhibiting the market’s attempt to break above this zone. Breaking this area would mean exceeding the resistance line of the large-scale triangle. which has been going on for three years, as the following graph shows.
DOGE market could seek USD 0.22
The approach to this resistance line demonstrates the possibility of DOGE entering an uptrendif he breaks this barrier with force. In this case, the market’s objective could be to initially recover the maximum of USD 0.22 that it marked this year.
On the contrary, if the price fails to break this resistance and remains below the trend line, the pennant would lose validity. In such a scenario, traders should be attentive to a possible continuation of the sideways or bearish market.
The current rally is being influenced by rising demand for bitcoin (BTC) this week in a historically bullish month for the digital currency. With the start of interest rate cuts in major economic powers such as the United States and China, risk demand is expected to strengthen.
This global scenario could favor the memecoin market, including dogecoinalthough it experiences lower performance than others in the niche. However, it should be taken into account that the risks of recession and escalation of geopolitical conflicts bring risk demand into play. Therefore, it is crucial to take a broad view of the market to identify possible price movement.