Dogecoin has just broken out of a unique ascending triangle pattern, signaling that it may be preparing for the next key level. According to recent market trends, Dogecoin (DOGE) has shown resilience, aiming for the $1 threshold despite not surpassing the resistance level.
The next key price level for Dogecoin is $0.56.
Renowned cryptocurrency analyst and trader Rekt Capital discussed Dogecoin's next bullish move on X (formerly Twitter) on December 20 after it broke out from the ascending triangle pattern. Typically, when a cryptocurrency breaks out of an ascending triangle, it indicates that the price has stabilized above the main resistance line.
The ascending triangle is a unique bullish pattern often formed in an uptrend, signaling the continuation of the cryptocurrency's upward momentum. This pattern is formed by a horizontal resistance line, where the cryptocurrency price struggles to break out, and an upward sloping trend line, where the price forms higher lows over time.
According to Rekt Capital's Dogecoin price chart, this meme coin began to form an ascending triangle pattern after experiencing a strong surge above $0.35. Dogecoin has undergone various fluctuations and volatility throughout the pattern while attempting to break and maintain above the resistance level of $0.4.
Now that Dogecoin has successfully surged past the $0.4 level and is currently trading at $0.43, Rekt Capital suggested that this meme coin is preparing for another price surge. The analyst identified $0.569 as Dogecoin's next bullish target, marking a 32.33% increase from the current level.
Rekt Capital also revealed in their X post that after breaking out of the ascending triangle, the price of a cryptocurrency often returns to the breakout level for a retest. According to the price chart, the breakout level for the current ascending triangle of Dogecoin is represented by the peak of the pattern, ranging from $0.4 to $0.45.
Furthermore, the analyst pointed out that Dogecoin could also retest after the breakout. This means that the price of the cryptocurrency might drop back to the breakout level but will not fall below that level, confirming a new support area. Although this significant movement does not always occur, it is considered a healthy bullish sign confirming that the cryptocurrency's breakout following the ascending triangle is valid.
Dogecoin will witness a strong price increase
Cryptocurrency analyst Bluntz also commented on Dogecoin's successful breakout from the 3-week range around the resistance level of $0.4. The analyst stated that Dogecoin's next bullish move "will be fierce," experiencing a strong price increase similar to earlier this month.
Presenting the price chart, the analyst emphasized that Dogecoin is on a rapid and continuous upward trajectory towards $0.9. This target is getting closer to the highly anticipated milestone of $1, which most analysts predict for Dogecoin's price.