- Descending triangle pattern on DOGE chart resulted in 23,200% surge.
- Falling wedge pattern suggests potential resistance level for DOGE.
- Bollinger Bands indicate potential price correction and lower low for DOGE.
An anonymous crypto analyst, known as Ali, has identified the emergence of a descending triangle pattern on the one-week chart of DOGE. Ali further highlighted that the previous occurrence of this pattern resulted in an astonishing surge of 23,200% for DOGE. Presently, Ali speculates that if DOGE manages to close above the $0.80 mark, there is a possibility of witnessing a similar bullish surge once more.
Upon analyzing the DOGE/USDT 1-Day Chart, a falling wedge pattern may emerge based on the consistent formation of lower and lower lows. This observation suggests a potential convergence between the 200 Simple Moving Average (SMA) and the trendline shortly, which could establish a formidable resistance level for DOGE.
The Bollinger Bands indicator indicates that the candlesticks are testing the upper band, suggesting an abundance of buyers in the DOGE market. This influx of buyers may lead to a potential price correction shortly. Additionally, if the hypothesis of DOGE forming a falling wedge pattern holds, a new lower low could be established during its price retracement phase.
Additionally, a marginal possibility exists for DOGE to surpass its present resistance level situated at the 200SMA. However, in such a scenario, it is plausible for DOGE to experience a subsequent retracement, as the meme coin may be deemed overbought according to the Bollinger Bands indicators commonly utilized in the cryptocurrency market.
The descending wedge pattern presents a potential opportunity for entry into a bullish market characterized by a significant surge. Analyzing the historical price level shows that DOGE would need to undergo a substantial 168.37% surge over time to reclaim this previous level. This surge, reaching triple-digit percentages, can propel DOGE towards the $0.1500 mark.
Nevertheless, meme coins have the potential to deviate from the fundamental principles of technical analysis, as the interests and psychological factors of traders may influence their price. Traders must be aware that sudden and significant increases in value, reaching three or even five-digit figures, could be attributed to the market’s fascination and the influx of numerous buyers.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
