Dogecoin Eyes $0.265 Target After Breaking Descending Triangle Formation

3 mins mins

Key Insights:

DOGE breaks the triangle pattern, targeting $0.265 following a strong bullish breakout.
Analyst predicts DOGE’s third bull wave as consolidation positions coin for growth.
DOGE drops sharply in mid-October, signaling market volatility amid trader shifts.

Frame 49 — *Dogecoin Eyes $0.265 Target After Breaking Descending Triangle Formation*

Dogecoin (DOGE) has seen a surge in price after breaking out of a descending triangle pattern on its daily chart. DOGE could reach a target of $0.265, a previous swing high, following the breakout. This upward movement is supported by a strong candle closing above the resistance line of the triangle.

Key Breakout Signals Bullish Momentum

According to Trader Tardigrade the breakout signals a shift in the trend from a downtrend to an uptrend. He noted that the breakout above the triangle’s resistance is a clear sign of a potential bullish reversal. He further explains that the price has been consolidating in the range of $0.183 to $0.205 before the breakout occurred.

According to the analyst, holding above the breakout zone is crucial for confirming the upward trend. If the price maintains support above $0.205, the path to $0.265 becomes more likely. This price target represents a previous swing high and would confirm the continuation of the bullish trend. The chart pattern, along with the price action, suggests that DOGE is in a favorable position for continued upward momentum.

Third Bull Wave Is Approaching

However, while Dogecoin has experienced short-term volatility, some analysts believe that DOGE is set for a third major bull wave. Crypto analyst EtherNasyonaL noted that the long-term downtrend in DOGE has been broken, and key support levels have been retested.

As the price of DOGE is around $0.207, it is consolidating within the lower range of a multi-year ascending channel. The analyst noted that the real expansion phase hasn’t arrived yet, but DOGE is positioning itself for a larger breakout similar to previous bull runs in 2017 and 2021.

Dogecoin Recent Price Drop and Market Activity

Despite the positive technical outlook, DOGE experienced a sharp price drop in mid-October, falling from around $0.27 to below $0.18. This sudden decline coincided with a drop in open interest (OI)-weighted funding rates, pointing to a shift in trader sentiment and possibly a large-scale exit from long positions.

As of press time Dogecoin, DOGE was trading at $0.2029 with a 24-hour trading volume of over $2.15 billion. While the coin is up by 0.45% in the past 24 hours, the market remains volatile. Traders are closely watching whether DOGE can hold above recent breakout levels or face further corrections.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.