Dogecoin Forms Symmetrical Triangle, Which Could Precede Significant Price Movement

Dogecoin is on a notable decline of 11.8% and 20% in the past 24 hours and seven days, respectively, and could retest support at the $0.30 price level soon.

Dogecoin price has declined by 11.8% in the past 24 hours and 20% in the past seven days. Despite the decline, a classic technical pattern could be forming on DOGE’s daily candlestick chart.

According to Trader Tardigrade, a well-known technical analyst on social media platform X, Dogecoin looks like it has been trading within a symmetrical triangle in the past seven days.

This symmetrical triangle formation emerged as a result of Dogecoin’s price correction, which began after it reached $0.43 on January 18. As you can see on the daily candlestick chart, the majority of candlestick bodies have remained within this triangle since January 20.

While the initial two days of the pattern’s formation did see a few wicks breaking above the upper trendline, Dogecoin’s price quickly retreated back into the pattern.

Since then, the price has shown a sequence of lower daily highs and higher daily lows, a behavior that indicates waning selling pressure and an equilibrium between buyers and sellers.

The price action has pushed toward the apex of the triangle, and a breakout could favor the bulls, pushing the price significantly higher.

If Dogecoin Breaks Out of the Triangle

If Dogecoin manages to break above the upper trendline of the symmetrical triangle, it could signal a continuation of the bullish trend.

According to Tardigrade, this breakout could lead Dogecoin to a price target of at least $0.45.

However, instead of moving upward, Dogecoin has recently broken below the lower trendline of the symmetrical triangle, shifting its trajectory downward toward support at $0.31.

This level has proven to be a significant liquidity zone over the 30 days. In fact, $0.31 has served as a reliable support point, with Dogecoin rebounding from this price three times during recent declines.

The most notable recovery occurred on January 13, when Dogecoin bounced off the $0.31 level and subsequently surged upward, eventually reaching a high of $0.4318.

Now, the next step is whether DOGE can repeat this pattern by rebounding once again at $0.31.

A successful rebound at this critical support level would indicate that buyers are stepping in to defend and give Dogecoin the strength it needs to resume its upward trajectory. If the rebound gains sufficient momentum, it could reestablish confidence in DOGE’s bullish outlook and set the stage for a renewed attempt at breaking the $0.45 price target.

Until then, $0.31 remains a key level to watch as the meme coin tests the resolve of buyers.