The price movement of Dogecoin is on one Correction In the weekly time frame, with cryptocurrency has currently fallen by about 13 % in the past seven days. Although the wider cryptoma market Mood seems positive The king of the meme coins still has to take advantage of this and exceed the $ 0.4 mark.
The technical analysis of the Doge price diagram shows that the cryptocurrency fluctuates in an ascending triangle, which could be dangerous for further price development.
The rising triangle pattern from Doge: Chance or Risk?
Andrew Griffiths, a cryptoanalyst on the social media platform X, found that Dogecoin Currently fluctuates up and down in an ascending triangle pattern. This pattern has been in the game since mid -December and Dogecoin has repeatedly bounced off both the upper and the lower trend line of this pattern.
In his analysis, Griffiths pointed out that the rising triangle, which is currently shaping Doge’s price movement, both promises and dangers. Historically, it is known that this pattern ultimately leads to an outbreak to higher levels, but there is also the likelihood of strong declines when the price breaks through important support zones within the pattern.
Of course that’s A bullish development should be the caseBut the persistent fluctuations of Dogecoin within the pattern indicate that the meme coin could initially have a downward trend, even if another rally should occur. Griffiths mentioned that Optimism after the choice of Donald Trump has created a positive general market mood that could support Dogecoin’s upward dynamics. However, he emphasized that this optimism may not protect the meme coin from the potential volatility that is associated with its persistent price movement in this environment.
Can Dogecoin recover from here?
At the time of writing this article, DOGE is traded at $ 0.36, which corresponds to an increase of 2.6 % in the last 24 hours after a recovery of $ 0.34. However, this daily recovery has hardly contributed to comparing the general performance, since Dogecoin continued to fall by 13.2 % last week. The analysis of the latest price movements shows that the meme coin was repeatedly faced with problems Rejections on a descending trend line In the last seven days.
Doge is currently trying to break through this downward trend line. A further rejection here will extend the downward movement of the price. The opinion in this case is that Dogecoin may already have exceeded this cycle, which would lead to another longer correction in the direction of the $ 0.22 mark.
The other result is that Dogecoin breaks through the trend line and carries out an upward movement from here. This is the more bullish option. According to the technical analysis of the crypto analyst Kevin (@kev_capital_ta), this is the case more likely scenario for Dogecoin. He pointed out that despite the downward trend, Dower is still traded above the macroeconomic gold pocket. However, he found that this scenario would mainly depend on Bitcoin carried out the upward trend first.
Selected picture of Unsplash, diagram of tradingview.com