Dogecoin (DOGE) might be about to make a big price jump. Technical analysis suggests it’s forming a bullish “Ascending Triangle” pattern on its 4-hour chart. This, combined with a recovery from oversold levels, hints at a possible breakout.
The Ascending Triangle Pattern
An Ascending Triangle is a bullish chart pattern. It’s formed by a flat horizontal resistance line (the price keeps getting rejected at the same high point) and a rising trendline (the price keeps making higher lows). One analyst, Trader Tardigrade, spotted this pattern on DOGE’s 4-hour chart. The price is bouncing off a rising trendline while struggling to break through resistance around $0.334. This suggests buyers are getting stronger, potentially leading to a price increase if it breaks through that resistance.
RSI Rebound Adds to the Bullish Sentiment
Adding to the positive outlook, Dogecoin’s Relative Strength Index (RSI) recently dipped below 30% (oversold territory), but it’s rebounding. A move above 70% (overbought territory) would further signal strong buying pressure. This recovery supports the idea of a price increase.
Potential Price Targets and Risks
If DOGE breaks above the $0.334 resistance, the price could shoot up to between $0.355 and $0.360, according to the chart analysis. However, if it fails to break through, it might retest the ascending trendline before another attempt.
A New All-Time High for DOGE?
Despite a recent price dip, Dogecoin is showing resilience. Another analyst, “Coinvo,” with a large following, predicts a new all-time high (ATH) is coming. Their analysis, looking at a longer-term (weekly) chart, points to two key resistance levels:
- $0.015: Broken in early 2021, leading to a huge price surge.
- $0.6: Dogecoin’s previous ATH in 2021.
DOGE’s current price is approaching this $0.6 level, following a similar pattern to the 2021 bull run. After a period of consolidation between 2022 and 2023, a new high seems possible. Currently trading around $0.33, it’s showing signs of a potential upward trajectory.
