A cryptocurrency analyst known as 'CryptoSanders9563' revealed in a report on TradingView that Dogecoin's price has broken out of the symmetrical triangle pattern. This technical pattern, signaling the continued upward movement of Dogecoin, is expected to trigger a price increase to a new target above $0.375.
The symmetrical triangle will push Dogecoin's price above $0.37
CryptoSanders shared the Dogecoin price chart, showing the symmetrical triangle pattern formed by converging trend lines. According to the TradingView analyst, Dogecoin's price has surpassed the upper trend line of the symmetrical triangle at around $0.316, confirming the bullish breakout and signaling the potential for a surge to a new price target above $0.375.
A symmetrical triangle is a chart pattern signaling a consolidation phase before the price breaks out. When the price of a cryptocurrency breaks out from this pattern, it often indicates the beginning of a new trend or the continuation of a previous trend. Hence, breaking out from the lower trend line marks the start of a bearish phase and vice versa.
CryptoSanders revealed that the price breakout of Dogecoin is accompanied by continuous price action on important moving averages, further reinforcing its bullish setup. At the time of the analyst's report, Dogecoin's price was trading above the 50-day Exponential Moving Average (EMA) and the 200-day EMA.
These moving average lines are important indicators showing the continuous upward momentum of Dogecoin's price. The TradingView analyst has speculated that the convergence of both moving averages could serve as dynamic support for Dogecoin, potentially reinforcing its upward trend.
Following the recent breakout from the symmetrical triangle pattern, the analyst has identified the $0.375 level as the next important resistance for Dogecoin. This price level is also a psychological level for Dogecoin, triggering profit-taking for investors.
If the price of Dogecoin can break through the resistance of $0.375, it could trigger a stronger upward rally to new highs. However, if it fails to surpass this level, it may lead to another downward trend, potentially pushing Dogecoin's price down to the support level of $0.306.
Dogecoin Trading Setup and Strategy
While sharing his optimistic prediction about Dogecoin's price trajectory, CryptoSanders has also outlined a clear trading strategy for investors looking to capitalize on the breakout of this symmetrical triangle pattern.
The analyst has identified the entry zone at a price of $0.316 after confirming the breakout. A stop-loss level of $0.306 has been set to minimize downside risk and avoid financial losses in case the breakout fails.
Furthermore, the previously anticipated target of $0.375 has been reaffirmed as the main profit-taking zone, coinciding with the resistance area marked on the chart. CryptoSanders revealed that this trading setup provides a favorable risk/reward ratio. Investors are likely to gain significant profits as long as the price of Dogecoin stays above the breakout level and the stop-loss order is respected.
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