A cryptocurrency analyst named 'CryptoSanders9563' revealed in a report on TradingView that Dogecoin's price has broken out of the symmetrical triangle pattern. This technical pattern suggests that Dogecoin will remain bullish, expected to trigger a price surge to new targets above $0.375.
The symmetrical triangle drives Dogecoin's price to break above $0.37.
CryptoSanders shared a price chart of Dogecoin, showing a symmetrical triangle pattern formed by converging trend lines. According to TradingView analysts, Dogecoin's price has broken above the upper trend line of the symmetrical triangle, around $0.316, confirming a bullish breakout and indicating a potential surge to new price targets above $0.375.
A symmetrical triangle is a chart pattern that signifies a period of consolidation before a price breakout. When the price of a cryptocurrency breaks out of this pattern, it often indicates the beginning of a new trend or the continuation of the previous trend. Therefore, breaking below the downtrend line signifies the start of a bearish phase, and vice versa.
CryptoSanders revealed that the price breakout of Dogecoin was accompanied by prices consistently above key moving averages, further strengthening its bullish momentum. At the time of the analyst report, Dogecoin was trading above the 50-Exponential Moving Average (EMA) and the 200-EMA.
These two moving averages are key indicators suggesting that the price of Dogecoin will continue to rise. TradingView analysts speculate that the convergence of the two moving averages may provide dynamic support for Dogecoin, potentially enhancing its upward momentum.
Following the recent breakout of the symmetrical triangle pattern, analysts pointed out that $0.375 is the next major resistance level for Dogecoin. This price point also represents a psychological level for Dogecoin, triggering profit-taking among investors.
If Dogecoin can break through the resistance level of $0.375, it could trigger a larger price rebound to new highs. However, if it fails to break this level, it may lead to another downward trend, potentially pushing Dogecoin's price to the support level of $0.306.
Dogecoin trading setup and strategy
While sharing his optimistic outlook on Dogecoin's price movement, CryptoSanders also outlined a clear trading strategy for investors looking to capitalize on this symmetrical triangle breakout.
After confirming the breakout, the analyst identified a price level of $0.316 as the entry zone. The stop-loss was set at $0.306 to mitigate downside risk and avoid financial loss in the event of a failed breakout.
Furthermore, the previously predicted target of $0.375 has been reaffirmed as the primary profit-taking area, aligning with the highlighted resistance zone on the chart. CryptoSanders revealed that this trading setup offers a favorable risk-reward ratio. As long as Dogecoin's price remains above the breakout level and the stop-loss is respected, investors could potentially realize significant profits.
