Dogecoin appears to have lost the popularity it enjoyed at the beginning of the year as its price continues to consolidate without a clear outlook. Still, the technicals suggest a clear resistance level DOGE must overcome to resume its uptrend.
Dogecoin Sits Under Stiff Resistance
Dogecoin remains stagnant as Bitcoin has stolen the crypto spotlight due to mounting speculation about an ETF approval in the U.S.
The meme-coin continues consolidating without proving a clear signal of where its price is going next. The lackluster price action led to the formation of a symmetrical triangle on DOGE’s daily chart. The series of lower highs Dogecoin has recorded since Apr. 23 formed the pattern’s hypotenuse, while the $0.16 support level created the x-axis.
As the tenth-largest cryptocurrency by market cap edges closer to the symmetrical triangle’s apex, it suggests that a significant price movement could be underway.
A spike in buying pressure around the current price levels that pushes Dogecoin above the triangle’s hypotenuse at $0.25 could be considered a breakout. If this were to happen, DOGE could surge by more than 78% towards $0.45.
Such a bullish target is determined by measuring the height of the triangle’s y-axis and adding it to the breakout point.
Wise traders might wait for a decisive daily candlestick close above $0.25 before entering any bullish positions. Failing to move past this hurdle may lead to a rejection that sends Dogecoin back to the $0.17 support floor, as seen over the past few months.
A retest of the $0.17 support may represent an ideal buying zone for market participants. Still, any signs of weakness at this level can result in a steep correction as the next critical support area sits around $0.07.
Source: cryptobriefing.com
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