Dogecoin Eyes $0.50 as Triangle Breakout Sets Stage for Bullish Rally
With a triangle pattern determining Dogecoin’s fate, will the bulls overpower the incoming selling pressure for a quick rally to $0.50?
A surge in Bitcoin’s buying activity has resulted in a new all-time high, but meme coins are struggling to initiate a rally.
Dogecoin is currently stuck at the crucial level of $0.40, maintaining a sideways trend, and has fallen under a market cap of $60 billion.
Over the past month, the price has seen a positive growth of 12.76%. Amid the compression of price trends, Dogecoin is nearing a critical crossroads, hinting at a potential breakout rally.
Dogecoin Triangle Holds The Bullish Fate
The price action of Dogecoin showcases a symmetrical triangle formation on the 4-hour chart. This pattern signals indecision but also suggests that a decisive move is imminent.
Dogecoin’s price is testing the lower support trendline near the 23.60% Fibonacci level at $0.395.
With a rejection at the lower price levels, Dogecoin is maintaining dominance above the psychological $0.40 mark. Thus, it remains at a potential bounce-back point within the triangle pattern.
Within the triangle, Dogecoin’s price is showing a sideways shift in momentum, trading between key levels. It struggles to break above the 38.20% Fibonacci level at $0.4098.
This consolidation phase reflects coiling momentum, signaling that a high-momentum rally could follow a breakout.
The 4-hour RSI shows a minor bullish divergence with the current lower price rejection. This bullish signal increases the likelihood of a breakout rally.
However, the resistance at the 38.20% Fibonacci level and the struggle to maintain a close above it remain important thresholds to watch.
DOGE Price Targets
If the broader market recovers, a bullish comeback in Dogecoin could trigger a meme coin rally. As a result, a triangle breakout could be imminent, potentially leading to the formation of a new 52-week high.
Based on Fibonacci levels, the breakout rally could target the 1.272 and 1.618 Fibonacci extensions at $0.4952 and $0.5284, respectively. Thus, a triangle breakout could see Dogecoin reclaim the $0.50 psychological level.
If the market closes bearishly below the local support trendline or the 23.60% Fibonacci level at $0.3958, the downside risk could be around 6.28%, testing $0.3732.
A bearish breakdown would confirm weakness, and in case of an extended pullback, the price could dip to the $0.34 mark, resulting in a 15% pullback.
