Dogecoin has a notable decline of 11.8% and 20% in the last 24 hours and seven days respectively, and may soon reassess support at the $0.30 price level. Despite this decline, Trader Tardigrade, a well-known technical analyst on social media platform X, managed to gain attention Symmetrical triangle formation on the Doge daily candlestick chart. This classic technical pattern is often precursor of significant price movementsand a breakthrough may cause growth to resume.
Dogecoin forming a symmetrical triangle
According to To trader Tardigrade, Dogecoin appears to be trading within a symmetrical triangle over the last seven days. This symmetrical triangle formation was created as a result Dogecoin price correction, which started after reaching $0.43 on January 18.
According to Daily Candlestick, most candle bodies have remained within this triangle since January 20. The initial two days of the pattern formation resulted in several wicks temporarily breaking above the upper trendline, but Dogecoin price quickly retraced the pattern. Since then, the price has shown a sequence of lower intraday highs and higher intraday lows, behavior indicating a decline in selling pressure and a balance between buyers and sellers.
Price action has managed to press against the apex of the triangle, and trader Tardigrade suggests that a breakout could favor the bulls, pushing the price much higher.
What happens if Doge breaks out of the triangle?
If Dogecoin manages to break above the upper trendline of the symmetrical triangle, it could signal a resumption of the bullish trend. Trader Tardigrade predicted that this breakout could take Dogecoin to a price target of at least $0.45.
However, instead of moving up, Dogecoin has Recently broken below The lower trend line of the symmetrical triangle, changing its downward trajectory towards the support at $0.31. This level turned out to be a significant liquidity zone over the 30-day period. In fact, $0.31 has served as a reliable support point, and Dogecoin has recovered from this price three times during recent declines. The most notable recovery occurred on January 13, when Dogecoin rebounded from the $0.31 level and then surged higher, ultimately reaching a high of $0.4318.
Now the next step is whether Doge can repeat this pattern Burping again for $0.31. A successful bounce 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 enough momentum, it could restore confidence in Doge’s bullish outlook and set the stage for another attempt at breaking $0.45. Until then, $0.31 remains a key level to watch When Meme Coin Tests Buyers’ Resolve.
Featured image from UNSPLASH, TradingView.com chart
