An analyst pointed out that according to the descending triangle pattern, this price level could become Dogecoin's next destination.
Dogecoin is currently within a descending triangle.
In a new post on X, analyst Ali Martinez discussed a pattern that Dogecoin's price has recently formed. This pattern is known as a 'descending triangle' in technical analysis (TA), which, as the name suggests, looks like a downward-sloping triangle.
The pattern involves two lines, with the asset's price consolidating between them: one is an upper line with a negative slope, while the other is a lower line parallel to the timeline. The former may pose resistance to the token, while the latter may serve as a support point.
Like other consolidation patterns in technical analysis, breaking above either of the aforementioned levels could indicate that the trend will continue in that direction. In other words, breaking out of the triangle could mean a bullish outcome, while breaking down from the triangle could lead to bearish action.
In TA, there are other triangular patterns that function similarly to the descending triangle, with the most prominent example being the ascending triangle, which has only one difference: it points upwards instead of downwards.
Now, here is the chart shared by the analyst, showing the descending triangle that Dogecoin has recently been in:
As shown in the above figure, Dogecoin recently retested the bottom of the triangle and successfully found support. Dogecoin is now rising and may subsequently retest the top. Given the current trend of the token, it may reach a ceiling of around $0.198. The token has encountered resistance at this level several times, so it may be rejected again.
However, if it breaks through the resistance level, Dogecoin could eventually surge significantly. 'Breaking the resistance level of $0.198 could trigger a 10% increase, reaching $0.220!' Martinez pointed out.
From the current spot price, reaching the target of $0.220 means that the cryptocurrency will grow by over 15%. It remains to be seen how DOGE will develop in the coming days and whether this descending triangle pattern will have any impact on its trajectory.
DOGE Price
Following the U.S. presidential election that ended with Donald Trump's victory, Dogecoin surged significantly yesterday. At the peak of the rally, Dogecoin was close to the $0.220 level, but today the price has retreated and is currently below $0.192.
The chart below shows the price trend of meme coins over the past few days.
