The Dogecoin price has just broken out from a unique Ascending Triangle pattern, signaling that it could be gearing up for its next critical level. Following recent market trends, Dogecoin (DOGE) has shown resilience, aiming to hit the $1 threshold despite failing to surpass resistance levels.
Dogecoin Price Next Critical Level At $0.56
Popular crypto trader and analyst Rekt Capital took to X (formerly Twitter) on December 20 to discuss Dogecoin’s next bullish move after it broke out of an Ascending Triangle pattern. Typically, when a cryptocurrency breaks out of an Ascending Triangle, it suggests that the price has settled above a key resistance line.
An Ascending triangle is a unique bullish pattern often formed during a price uptrend, signaling the continuation of a cryptocurrency’s upward momentum. The pattern is formed by a horizontal resistance line, where the cryptocurrency price struggles to break out of, and an upward-sloping trend line, where the price forms higher lows over time.
Following Rekt Capital’s Dogecoin price chart, the meme coin began forming an Ascending Triangle pattern after it witnessed a massive pump above $0.35. Dogecoin experienced varying volatility and fluctuations during the pattern as it attempted to breach and stay above the $0.4 resistance level.
Now that Dogecoin has successfully surged past $0.4 and is currently trading at $0.43, Rekt Capital has suggested that the meme coin is gearing up for another pump. The analyst pinpointed the $0.569 level as Dogecoin’s next upward target, marking a 32.33% increase from its current level.
Rekt Capital also revealed in his X post that after a break out of the Ascending Triangle, the price of a cryptocurrency often returns to its breakout level to retest it. According to the price chart, the breakout level for the current Dogecoin Ascending triangle represents the top of the pattern, which is between $0.4 and $0.45.
Furthermore, the analyst has indicated that a post-breakout retest is also possible for Dogecoin. This means that the cryptocurrency’s price could dip back to the breakout level but will not fall below it, confirming a new support zone. While this crucial movement does not always occur, it is seen as a healthy bullish sign confirming that an Ascending Triangle’s cryptocurrency breakout is legitimate.
Dogecoin To See Violent Upside Movement
Crypto analyst Bluntz has also commented on Dogecoin’s successful break out of its 3-week range around the $0.4 resistance level. The analyst has declared that Dogecoin’s next upside movement “will be violent,” experiencing a similar sharp price pump as it did earlier this month.
Presenting a price chart, the analyst emphasized that Dogecoin is on track for a swift and continuous price surge to $0.9. This target edges closer to the highly anticipated $1 mark, which most analysts are projecting for the Dogecoin price.
Featured image created with Dall.E, chart from Tradingview.com
