Dogecoin price action was marked by a fresh decline in the last 24 hours to retest the support at $0.33. This latest decline in the last 24 hours is a continuation of the downtrend over the last 48 hours that saw Dogecoin rejected just below $0.40 after Bitcoin was also rejected below $100,000 again.
However, technical analysis Dogecoin’s price action is still pointing to an uptrend, and crypto analyst Trader Tardigrade has highlighted the recent 48-hour decline as a retest of an uptrend. According to the analyst, Dogecoin price is merely retesting the top of an ascending triangle.
Dogecoin price is retesting the ascending triangle
Trader Tardigrade’s technical outlook is based on Dogecoin’s 4-hour candlestick time frame and looks at the meme coin’s price action since mid-December. As shown in the price chart below, Dogecoin is currently retesting the top of an ascending triangle, which is a bullish technical pattern often associated with bullish price momentum. This ascending triangle pattern puts Dogecoin at a critical point as the retest could either bounce higher or break lower, negating the bullish outlook.
What makes this scenario particularly compelling is its similarity to a previous ascending triangle breakout observed in November 2024. Back then, Dogecoin broke through the upper boundary of the triangle at around $0.14 in late October. The Dogecoin breakout was followed by a rise to $0.17 before the price fell lower to retest the breakout point. This retest proved successful as Dogecoin price surged and eventually climbed to multi-year highs.
Is it time to buy or sell Dogecoin?
According to Trader Tardigrade, this is not the case The right time to short sell or sell Shares of Dogecoin as the cryptocurrency could be on the verge of a significant price shift. The similarity in chart patterns between current price action and that of November 2024 adds additional weight to Trader Tardigrade’s outlook and history could repeat itself. Nonetheless, you should keep an eye on the current retest before making any final decisions, and its outcome will determine whether Dogecoin can repeat last year’s uptrend or experiences a reversal.
Current market sentiment also supports the possibility of a renewed uptrend for the Dogecoin price, at the latest by the end of January. Optimism across the cryptocurrency sector has been fueled by expectations that President-elect Donald Trump’s administration will follow through promised overhaul of crypto guidelines.
At the time of writing, Dogecoin price is at $0.3383, reflecting a 2.5% decline in the last 24 hours. Despite this short-term decline, trader Tardigrade predicts that a rebound from the top of the ascending triangle could trigger a new uptrend. The analyst has set a price target of $0.95 for Dogecoin, which if achieved would mark a new all-time high for the meme coin.
Featured image created with Dall.E, chart from Tradingview.com