Cryptocurrency analyst 'CryptoSanders9563' reported on TradingView that Dogecoin's price has broken through the symmetrical triangle pattern, which typically indicates that Dogecoin's upward momentum will continue, with prices expected to surge above $0.375.
Symmetrical triangle pushes Dogecoin price to break through $0.37
CryptoSanders shared the price chart of Dogecoin, showing a symmetrical triangle pattern formed by two converging trend lines. According to his analysis, Dogecoin's price broke above the upper trend line of the symmetrical triangle, around $0.316, marking an effective bullish breakout, implying the price is expected to aim for targets above $0.375.
The symmetrical triangle is a common chart pattern that typically occurs during price consolidation, representing the market's consolidation before a breakout. When the cryptocurrency price breaks through this pattern, it usually signifies the beginning of a new trend or the continuation of the previous trend. If the price breaks below the trend line, it typically marks the beginning of a bear market, while breaking above serves as a bullish signal.
CryptoSanders mentions that Dogecoin's price has broken through this pattern, and it has consistently stayed above the key moving averages, reinforcing its bullish momentum. At the time the analyst report was released, Dogecoin's price was trading above the 50-day and 200-day Exponential Moving Averages (EMA).
These two moving averages are very important, indicating that Dogecoin's price may continue to rise. Analysts at TradingView believe that the intersection of these two averages may provide dynamic support for Dogecoin, further driving the price upward.
After breaking the symmetrical triangle pattern, analysts point out that $0.375 is the next key resistance level for Dogecoin. This is not only a technical resistance point but also an important price level in terms of investor psychology, which may lead some investors to take profits.
If Dogecoin breaks through $0.375, it may lead to a larger rebound, pushing the price to new highs. However, if it fails to break this resistance level, it may trigger a price pullback, potentially dropping again to the support level of $0.306.
Dogecoin Trading Setup and Strategy
Regarding the trading strategy for Dogecoin, CryptoSanders also shares his views. He suggests that after confirming a breakout, one can enter around $0.316, setting a stop-loss at $0.306 to reduce downside risk. If the breakout fails, such a stop-loss can help investors minimize losses.
Additionally, the target of $0.375 has been reconfirmed as the main profit-taking area, consistent with the resistance level on the chart. CryptoSanders states that this trading setup provides a good risk-reward ratio. As long as Dogecoin remains above the breakout price and the stop-loss is executed, investors may achieve quite substantial profits.
