Recently, Dogecoin (DOGE) broke out of the rising triangle pattern, becoming the focus of the market, confirming its bullish momentum. In the recent market recovery, DOGE achieved a key technical breakout, and its subsequent bullish trajectory will depend on whether it can maintain the main support level.
Analysis of Rising Triangle Pattern
Since mid-November, a rising triangle has formed on the chart, capturing the consistently higher lows for DOGE, which are supported by an upward-sloping trend line.
The resistance level of the triangle is around $0.44. After multiple tests at this price level, DOGE ultimately achieved a breakout. After the breakout, DOGE re-tested the top of the pattern, converting the previous resistance into support, which is crucial for confirming the breakout.
Failing to hold the $0.44 area could invalidate the bullish trend and may lead to DOGE's price retreating within the triangle range. Conversely, a successful re-test can serve as a springboard towards higher levels.
Market Influencing Factors
Bitcoin's recent breakout above $100,000 has sparked bullish momentum across the altcoin market, benefiting Dogecoin as well. DOGE needs to break through the trend line again and maintain above it to sustain the current bullish trend.
Market Observers' Perspectives
Market observer The Cryptomist indicates that her recent strategy is to gradually build a long position in DOGE. She believes DOGE is likely to rise further, with an initial target price of $0.60, and if this level is reached, DOGE may break through the historical high of $0.70.
Moon Carl is optimistic about DOGE's consolidation within the rising triangle, noting that if a successful breakout occurs, DOGE could rebound to $0.6350.
Market Position Analysis
DOGE's daily chart shows strong upward momentum, with a 4.12% increase on the day, quoted at $0.4516, indicating renewed bullish interest in the market.
The Directional Movement Index (DMI) shows +DI at 28.19, exceeding -DI's 8.81, indicating that buying pressure is greater than selling pressure. The Average Directional Index (ADX) is at 60.8, showing a strong trend.
The pivot point is at $0.3479, marking a key area for distinguishing between bullish and bearish sentiment. If DOGE stays above this level, the momentum will remain bullish. DOGE will face resistance at $0.4769 (R1), $0.5567 (R2), and $0.6857 (R3); breaking through these levels will further drive the price up.
