Dogecoin Price Fluctuates In Ascending Triangle, Why This Is Very Dangerous

Dogecoin price movement on Correction path On the weekly time frame, with the cryptocurrency currently down around 13% in the past seven days. Although the broader crypto market Feelings seem positive The meme king has yet to take advantage of this and cross the $0.4 mark.

Technical analysis of the DOGE price chart shows that the cryptocurrency is fluctuating in an ascending triangle, which could pose a risk to the price path in the future.

DOGE Ascending Triangle Pattern: Opportunity or Risk?

Andrew Griffiths, a cryptocurrency analyst on the social media platform X, He pointed out that Dogecoin The price is currently moving up and down within the ascending triangle pattern. This pattern has been in effect since mid-December, and Dogecoin has repeatedly bounced from the upper and lower trend lines of this pattern.

In his analysis, Griffiths noted that the ascending triangle currently forming DOGE price action holds both promise and danger. Historically, this pattern has been known to eventually break out to higher levels, but it also has the potential for sharp declines if the price breaks through key support areas within the pattern.

Of course, An upward trajectory should be the casebut Dogecoin’s continued fluctuation within the pattern indicates that the meme coin may initially be trending lower, even if it will eventually continue to rise. Griffith mentioned that Optimism after the election of Donald Trump It has created positive sentiment in the broader market, which could support Dogecoin’s upward momentum. However, he stressed that this optimism may not protect the meme from potential volatility associated with sustained price movement within this setup.

Can Dogecoin Bounce Up from Here?

At the time of writing, DOGE is trading at $0.36, reflecting a 2.6% gain over the past 24 hours after bouncing from $0.34. However, this daily rebound did little to offset its broader performance, as Dogecoin remained down 13.2% over the past week. Analysis of recent price movements reveals that the memecoin has faced a recurrence Rejection at the downtrend line In the past seven days.

Currently, DOGE is now looking to break above this downtrend line again. Another rejection here will prolong the downward price movement. The view in this case is that Dogecoin may have already topped this cycle, which could lead to another long correction towards the $0.22 mark.

Another result is that Dogecoin breaks the trend line and continues the upward movement from here. This is the most bullish option. According to technical analysis by cryptocurrency analyst Kevin (@Kev_Capital_TA), this is The most likely scenario for Dogecoin. He noted that despite the downward trend, DOGE is still trading above the overall golden pocket. However, he noted that this scenario would mostly depend on Bitcoin making an upward move first.

Featured image from Unsplash, chart from Tradingview.com