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Dogecoin (DOGE) price is at a critical juncture as technical analysts point to the possibility of a major breakout. Popular cryptocurrency analyst Rekt Capital has identified a pivot pattern on the daily DOGE/USD price chart, indicating an impending rally.
Will Dogecoin price confirm the breakout today?
The daily chart of Dogecoin reveals an ascending triangle formation that has developed over recent weeks. This pattern is usually considered a bullish continuation signal, characterized by a horizontal upper resistance line and a rising lower support line. The formation indicates buying pressure building up, as each price bounce becomes shallower – meaning bulls are willing to buy at higher lows.
The upper horizontal line of the triangle is at approximately $0.44, a level that has been tested several times and acts as a major barrier to upward movement. The rising support trend line starts at $0.34 and rises gently, forming the lower border of the triangle and highlighting the increasing support levels.
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Rekt Capital emphasizes the importance of the current price action, saying: “Dogecoin has followed every Bitcoin so far. The top of the ascending triangle is now being retested as support. A successful retest here is crucial to precede a confirmed breakout.” If this retest strengthens the upper resistance of the triangle as a new support level, it could pave the way for a significant price increase.
A potential breakout target can be calculated by measuring the maximum height of the triangle – from the base near $0.34 to the top at $0.44 – and projecting it upwards from the breakout point. This indicates that Dogecoin is likely to reach or exceed the $0.54 mark.
Dogecoin price analysis (4-hour chart)
Another prominent crypto analyst, Satoshi Flipper (@SatoshiFlipper), provided insights based on the DOGE/USD chart on the 4-hour frame. he Notes: “DOGECOIN/usdt 4 hours: DOGE is still in consolidation mode, almost a month ago, but this flawless upward channel is filling up nicely and the breakout will be epic, just wait.”
The chart shows an ascending channel pattern, which is characterized by two parallel upward-sloping lines containing price action. This pattern is recognized as bullish, and consists of higher lows and higher highs. Dogecoin price oscillates 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 middle line of the channel, offering significant resistance around $0.46. Key levels to watch include: Minimum support is located around $0.40. Upper bound resistance is near $0.52, a potential catalyst for Dogecoin’s next major move.
The target price can be estimated after a breakout of an ascending channel by measuring the height of the channel at its widest part and extending that distance up from the breakout point. This prediction indicates that DOGE could rise to $0.64.
In addition to the technical signals, there could be a major catalyst for the DOGE price today, December 5. As reported by NewsBTC, Elon Musk and Vivek Ramaswamy are scheduled to address members of Congress. They are expected to submit key proposals under the auspices of the Department of Government Efficiency (DOGE). This development could have a significant impact on the price of Dogecoin, as Elon Musk’s involvement with memecoin has historically impacted market sentiment.
At press time, DOGE was trading at $0.44.
Featured image created with DALL.E, a chart from TradingView.com