Dogecoin price stabilizes above the broken trendline, forming a triangle pattern on the 4-hour chart, DOGE could fall 5% to retest support before potentially breaking through to $0.15.
Dogecoin price experienced a slight decline on Sunday, capping the recovery gains seen earlier in the week. As it consolidates in line with Bitcoin, the leading digital asset, there is the potential to stabilize market sentiment and restore flagging bullish momentum for a stronger rally. Currently down 1.9%, Dogecoin is approaching the lower support of a newly forming triangle, indicating a possible opportunity for a breakout rally.
Dogecoin Price: Triangular Pattern Hints at Continued Uptrend
Over the past four months, Dogecoin, a popular dog-themed memecoin, has exhibited a sustained downward trend formed by a wedge-shaped pattern, with prices fluctuating between two downward trend lines. During this time, Dogecoin's price plummeted from a high of $0.228 to a low of $0.091, resulting in a significant decline of 60%.
Amid the market recovery in July, the Dogecoin price made a sharp rebound, breaking through the July 20 pattern resistance, signaling a potential trend reversal and providing a solid base for a potential rally.
Data from derivatives market data provider CoinGlass shows a noticeable trend in open interest in DOGE futures. From a July low of $492 million, open interest has risen to the current value of $706 million, reflecting a strong 42% increase.
This growth indicates growing interest and bullish sentiment among traders regarding the future movements of the Dogecoin market.
Currently, the DOGE price forecast shows that the consolidation has broken through the trend line, stabilizing ahead of a potential re-breakout. A closer look at the 4-hour chart shows that price is moving within two converging trend lines, forming a triangle pattern. Dogecoin is trading at $0.129 with a market capitalization of $18.8 billion. Following this pattern, it could fall another 5% to retest triangle support.
Following this brief consolidation, Dogecoin could potentially break out of the triangle and continue its upward trajectory. With continued buyer support, the post-breakout rally could target targets of $0.15 and then $0.175.
Technical indicator
EMA: The flat 200-day exponential moving average indicates a broader sideways trend. However, the golden cross of the 50-200 day EMA will strengthen the bullish momentum.
RSI: Relative Strength Index's daily slope of 54% indicates neutral to positive sentiment among market participants.
