Dogecoin’s price action remains subdued as it struggles to break out of its sideways trend, hovering around the critical $0.40 level. Despite Bitcoin’s recent surge to a new all-time high, meme coins like Dogecoin are lagging behind, with DOGE’s market cap dipping below $60 billion. However, technical indicators suggest a breakout could be imminent as the price nears a crucial decision point.
Dogecoin Triangle Holds Bullish Fate
On the 4-hour chart, Dogecoin’s price movement forms a symmetrical triangle—a pattern signaling indecision but also indicating that a sharp move is around the corner. DOGE is testing the lower support trendline near the 23.60% Fibonacci retracement level at $0.395. Despite this pressure, the price has so far managed to hold above the psychological $0.40 mark, a key threshold for maintaining bullish sentiment.
The consolidation phase within the triangle reveals coiling momentum as Dogecoin trades between critical levels. Resistance at the 38.20% Fibonacci level of $0.4098 has prevented an upward breakout, with DOGE struggling to close above it. However, this sideways movement may set the stage for a high-momentum rally, especially if broader market conditions improve.
Adding to the bullish outlook, the 4-hour Relative Strength Index (RSI) exhibits a minor bullish divergence, suggesting buyers are gaining strength despite lower price rejections. If DOGE can overcome the 38.20% resistance, it could signal the start of a breakout rally.
Key DOGE Price Targets
If a breakout occurs, Dogecoin could target higher Fibonacci extension levels. A rally above the triangle pattern may aim for the 1.272 and 1.618 Fibonacci extensions, at $0.4952 and $0.5284, respectively. Such a move would see DOGE reclaim the critical $0.50 psychological level, marking a potential 52-week high.
Conversely, a bearish breakdown below the local support trendline at $0.395 could signal weakness. In this case, the price may fall to the $0.3732 level, representing a 6.28% downside risk. Further selling pressure could extend losses to $0.34, resulting in a 15% pullback.
Also Read: Dogecoin Outlook: Will DOGE Reach $0.90 After Bitcoin’s Historic Surge to $106,352?
As Dogecoin navigates this critical juncture, traders are closely watching for a decisive move. A breakout rally could reignite the meme coin market, while a failure to hold support may trigger further declines.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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