Dogecoin price is currently correcting after that Two weeks of extreme price increases Resulting in it reaching $0.426 for the first time since its massive rise in 2021. However, as is usual after such a crazy rally, the price of Dogecoin now appears to be… Subject to a short correction Generally, a small number of stockholders start taking profits or exit their positions. It is worth noting that the price of Dogecoin decreased by 8.5% in the past 24 hours and 13% since it reached $0.426.
Interestingly, this correction was called by a cryptocurrency analyst on social media platform X. According to cryptocurrency analyst Kevin, the recent Dogecoin price movement has led to the creation of a strange Dogecoin coin. Symmetrical triangle patternWhich may lead to either a correction or continuation of the upward trend.
The analyst says that the symmetrical triangle favors a price correction
Dogecoin has started to consolidate, which is completely normal before the rally continues. As cryptocurrency analyst Kevin pointed out using the 1-hour candlestick time frame, Dogecoin has been consolidating since November 12. This consolidation was characterized by the creation of lower highs and higher lows, resulting in a symmetrical triangle pattern.
Given that it is coming from an upward movement, the symmetrical triangle has a higher high Chance of breakout to the upside. but, The analyst noted That there is a greater chance of a correction, especially due to the daily Relative Strength Index (RSI) indicating an overbought condition above 90. At the time of its prediction, Dogecoin was trading at around $0.39. Since then, its price has fallen further, strengthening the correction case.
If the downward movement continues, Kevin A is selected The main support area is between $0.30 and $0.26, which corresponds to the golden pocket retracement levels. This range represents a potential 30-40% retracement from Dogecoin’s recent high of $0.426. “This is a 30-40% retracement from the local high, which is an ideal volume retracement in a bull market.” He said.
Taking into account the ongoing bullish sentiment, Kevin admitted In a subsequent post, he said that Dogecoin price may defy his expectations, and he may be wrong about the consolidation leading to a major correction.
He suggested the possibility that the symmetrical triangle is actually a bull flag pattern, which is typically associated with bullish breakouts. If this is the case, the pattern could pave the way for a bullish breakout that would push Dogecoin price towards a guaranteed target of $0.90.
Current status of Dogecoin price
At the time of writing, Dogecoin is trading at $0.37, having fallen by 8.5% in the past 24 hours. However, Dogecoin is still on track to end November with its best monthly gains in more than three years. The next few days will be crucial in determining how this will be implemented; Whether it is a consolidation stage Resolves with sharp correction or Marching to new highs.
Featured image created with Dall.E, chart from Tradingview.com
Comments are closed, but trackbacks and pingbacks are open.