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The price of Dogecoin (DOGE) stands in critical condition as technical analysts point to a possible major breakout. Renowned crypto analyst Rekt Capital has identified an important pattern on the daily price chart of DOGE/USD, which suggests an imminent increase.
Will the price of Dogecoin confirm the breakout today?
Dogecoin’s daily chart reveals an ascending triangle formation that has been occurring for the past few weeks. This pattern is generally considered a bullish continuation signal, characterized by a horizontal resistance line and a rising lower support line. The formation shows the accumulation of buying pressure, as each price reversal becomes smaller—meaning that bulls are willing to buy at a much lower price.
The upper horizontal line of the triangle sits around $0.44, a level that has been tested multiple times and serves as an important barrier to the upside. The ascending support line starts around $0.34 and moves up slightly, forming the lower boundary of the triangle and highlighting rising support levels.
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Rekt Capital emphasizes the importance of the current price action, saying: “Dogecoin has trailed all Bitcoin so far. It is now retesting the top of the Ascending Triangle as support. Effective retesting here is essential to prevent confirmed outbreaks.” If this retest reinforces the upper triangle resistance as a new support level, it could pave the way for a significant price increase.
A potential breakout target can be calculated by measuring the length of the triangle’s dimensions—from the base near $0.34 to the top at $0.44—and projecting it higher from the exit point. This suggests that Dogecoin may reach or exceed the $0.54 mark.
Dogecoin Price Analysis (4 Hour Chart)
Another prominent crypto analyst, Satoshi Flipper (@SatoshiFlipper), provided insights based on the 4-hour DOGE/USD chart. He comments: “DOGECOIN/usdt 4 hour: DOGE is still rallying, almost 1 month now, but this bullish channel is filling well and the breakout will be EPIC, just wait.”
The chart shows an ascending channel pattern, which is characterized by two parallel upward-sloping lines containing price action. This pattern is considered bullish, made up of high lows and high highs. The price of Dogecoin has been oscillating between these lines, the lower line acting as support and the upper line as resistance.
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Currently, the price is approaching the center line of the channel, which provides important resistance around $0.46. Key levels to watch include: Lower bound support remains around $0.40. The upper boundary resistance is near $0.52, which could be the trigger for the next big move for Dogecoin.
The price target following the exit of an ascending channel can be estimated by measuring the length of the channel at its widest point and extending that distance upwards from the exit point. This speculation suggests that DOGE could rise to $0.64.
In addition to the technical signals, there may be a major mover of the DOGE price today, December 5. As reported by NewsBTC, Elon Musk and Vivek Ramaswamy will speak to members of Congress. They are expected to present important proposals under the Department of Government Operations (DOGE). This development could have a significant impact on the price of Dogecoin, as Elon Musk’s involvement with memecoin has historically influenced the market.
At press time, DOGE traded at $0.44.
The featured image was created with DALL.E, a chart from TradingView.com
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