Dogecoin Breaks Out Of A Bullish Chart Formation, Time To Buy More DOGE?

Dogecoin might be demonstrating bearish price movements in the last few days. However, the upcoming days could be promising for the dog-themed meme coin following a recent breakout from a bullish chart pattern, which could push DOGE toward higher price levels.

Bullish Breakout Ignites Dogecoin’s Momentum For More Growth

Despite recent fluctuations in the general market, Dogecoin has managed to experience a positive trend by breaking out of a critical chart formation, as cited by Trader Tardigrade, a crypto analyst and investor. Specifically, DOGE has broken out of the Symmetrical Triangle pattern, sparkling optimism among investors and traders about an impending rally to higher levels.

The expert highlights that this breakout could ignite renewed momentum for the meme coin, with key resistance levels now in focus. Given the robust optimism within the market and growing participation, the development raises the possibility of a sustained rally once DOGE resumes its uptrend.

Following the breakthrough from the Symmetrical Triangle formation, DOGE did not immediately pull back, suggesting that sellers did not defend the crypto asset above the upper line of the triangle. According to Trader Tardigrade, this is an indication of strength, implying the potential for more price growth.

Furthermore, in the event that Dogecoin retraces to the triangle’s upper line for a retest at the $0.44 price level, the expert claims that the drop might be a great chance to purchase more DOGE which could offer a potential return of more than 50% to the symmetrical triangle target set at $0.65.

Meanwhile, in the broader view, particularly the monthly time frame, Trader Tardigrade highlighted that DOGE has been bouncing between the Oversold and Overbought zones on the macro chart, reflecting heightened volatility and indecision among investors and traders.

According to the analyst, DOGE is currently moving into the overbought zone after exiting the oversold area, which is linearly predicted to be between the $8 and $10 levels. As a result, he is confident that DOGE will peak within the levels in the ongoing cycle.

With the $8 to $10 range projected as the peak of this cycle, the next floor price is forecasted to drop to about $1.8 and $0.8, presenting a purchasing opportunity for the following market cycle.

DOGE’s Decline Set To Extend?

DOGE continues to drop sharply, recording a nearly 6% decline in the past day. On Monday, the meme coin also witnessed a decrease of more than 11%, sparkling uncertainty and speculations about an extended bearish movement.

However, the pullback may be shortlived as bulls are beginning to take control of the market, indicated by an over 81% increase in trading volume. As the market progresses, traders are advised to monitor key support and resistance levels as the meme coin navigates this critical phase.

Featured image from iStock, chart from Tradingview.com