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The price of Dogecoin (DOGE) is at a critical juncture as technical analysts point to a potentially significant breakout. Renowned crypto analyst Rekt Capital has identified a crucial pattern on the DOGE/USD daily price chart, indicating an impending rise.
Will Dogecoin Price Today Confirm the Breakout?
Dogecoin’s daily chart reveals an ascending triangle formation that has been developing over the past few weeks. This pattern is typically considered a bullish continuation signal, characterized by a horizontal upper resistance line and a rising lower support line. The formation signals increasing buying pressure as each price retracement becomes shallower – implying that bulls are willing to buy at higher lows.
The upper horizontal line of the triangle is at around $0.44, a level that has been tested several times and serves as a major barrier to upward movement. The ascending support trendline starts around $0.34 and rises slowly, forming the lower boundary of the triangle and highlighting the increasing support levels.
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Rekt Capital emphasizes the importance of the current price action, stating: “Dogecoin has followed every Bitcoin so far. Now retest the top of the ascending triangle as support. Successful retesting here is crucial to precede a confirmed outbreak.” If this new test solidifies the upper resistance of the triangle as a new support level, it could pave the way for a substantial price increase.
The potential breakout target can be calculated by measuring the maximum height of the triangle (from the base at $0.34 to the top at $0.44) and projecting it upwards from the breakout point. This suggests that Dogecoin could potentially reach or cross the $0.54 mark.
Dogecoin Price Analysis (4-hour chart)
Another prominent crypto analyst, Satoshi Flipper (@SatoshiFlipper), has provided insights based on the 4-hour DOGE/USD chart. He notes: “DOGECOIN/usdt 4 hours: DOGE still consolidating, for almost 1 month now, but this flawless rising channel is filling up nicely and the breakout will be EPIC, just wait.”
The chart illustrates a rising channel pattern, characterized by two parallel, upward sloping lines containing the price action. This pattern is recognized as bullish and is formed by higher lows and higher highs. The Dogecoin price fluctuated between these lines, with the lower line acting as support and the upper line acting as resistance.
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Currently, the price is approaching the channel midline, offering significant resistance around $0.46. The key levels to watch are: The lower limit support is around $0.40. The upper limit resistance is near $0.52, a potential catalyst for Dogecoin’s next big move.
The price target after a breakout in a rising channel can be estimated by measuring the height of the channel at its widest part and extending that distance upward from the breakout point. This projection suggests that DOGE could rise to $0.64.
In addition to the technical signals, today, December 5, could be a major catalyst for the DOGE price. As reported by NewsBTC, Elon Musk and Vivek Ramaswamy will address members of Congress. They are expected to present major proposals under the auspices of the Department of Government Efficiency (DOGE). This development could have a substantial impact on the Dogecoin price, as Elon Musk’s involvement with the memecoin has historically influenced market sentiment.
At the time of writing, DOGE was trading at $0.44.
Featured image created with DALL.E, chart from TradingView.com