Key Insights
- Dogecoin trades within a tightening triangle, with analysts expecting a breakout by late August.
- Fibonacci levels at $0.233 and $0.218 signal key zones for potential breakout confirmation.
- Monthly chart shows repeating pattern, indicating possible uptrend if historical cycles remain consistent.
Dogecoin (DOGE) is currently trading within a symmetrical triangle pattern on the 12-hour chart. This structure is made up of lower highs and higher lows, creating a tightening price range. The setup is often seen before a strong price move in either direction.
At the time of writing, DOGE traded around $0.22, close to the triangle’s midpoint. According to a chart shared by analyst Ali Martinez, the apex of this pattern is projected to form by late August. Traders are watching closely for any breakout above or below the triangle’s range, which may suggest a move of up to 40% from the breakout point.
Support and Resistance Levels to Monitor
The triangle’s boundaries are defined by key Fibonacci retracement levels. The 0.618 level sits at $0.233 and currently acts as resistance. On the other side, the 0.5 retracement level at $0.218 serves as near-term support.
If the price breaks above $0.233, it could trigger a run toward the $0.255–$0.287 zone. A move below $0.218, however, may send the price toward $0.204 or even lower. These levels are seen as short-term markers for market direction.
Monthly Chart Shows Repeating Price Structure
A separate analysis from Trader Tardigrade shows a long-term pattern on the DOGE/USD monthly chart. The chart displays a rounded bottom followed by a steady rising channel, similar to previous cycles. Dogecoin has followed this structure in the past before making a sharp upward move.
According to the chart, DOGE is now at the end of the ascending channel. The setup closely matches the pattern seen before previous rallies.
“The chart implies the base has been formed and DOGE may be getting ready for the next leg up,” said the analyst.
Market Sentiment and Trading Activity
Dogecoin’s 24-hour trading volume is currently around $2.79 billion, reflecting active interest from the market. The price has declined by 1% in the past 24 hours and 2% over the last seven days. Despite this, traders remain focused on the narrowing triangle and the possible breakout direction.
Analysts are looking for a spike in volume as a confirmation of the next move. A clear break beyond the current range, backed by strong buying or selling, may support the 40% price swing suggested in technical projections.
While past cycles have followed similar paths, some traders remain cautious. “There’s no guarantee the pattern will repeat,” one user noted, reflecting a measured outlook as the market awaits a clear signal.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/analysis/40-percent-swing-ahead-dogecoin/