This article is also available in Spanish.
Dogecoin (DOGE) price is at a critical juncture as technical analysts point to a potentially significant breakout. Renowned crypto analyst Rekt Capital has identified a pivotal trend on the DOGE/USD daily price chart, suggesting an imminent rise.
Will Dogecoin Price Confirm Breakout Today?
Dogecoin’s daily chart reveals an ascending triangle formation that has been developing in recent weeks. This pattern is generally considered a bullish continuation signal, characterized by a horizontal upper resistance line and an ascending lower support line. The formation indicates increasing buying pressure, as each price retracement becomes shallower, implying that bulls are willing to buy at higher lows.
The upper horizontal line of the triangle sits at around $0.44, a level that has been tested several times and is a significant obstacle to upward movement. The ascending support trendline starts around $0.34 and slowly increases, forming the lower boundary of the triangle and highlighting increasing support levels.
Related reading
Rekt Capital highlights the importance of the current price action, stating: “Dogecoin has followed every Bitcoin so far. I am now testing the top of the Ascending Triangle again as support. A successful retest here is crucial to precede a confirmed breakout. If this retest cements the triangle’s upper resistance as a new support level, it could pave the way for a substantial price increase.
The potential breakout target can be calculated by measuring the maximum height of the triangle (from the base near $0.34 to the high at $0.44) and projecting it upwards from the breakout point. This suggests that Dogecoin could potentially reach or exceed the $0.54 mark.
Dogecoin Price Analysis (4-hour chart)
Another top crypto analyst, Satoshi Flipper (@SatoshiFlipper), provided insights based on the DOGE/USD 4-hour chart. He notes: “DOGECOIN/usdt 4 hours: DOGE is still in consolidation, for almost a month now, but this flawless ascending channel is filling up nicely and the breakout is going to be EPIC, wait for it.
The chart illustrates an ascending channel pattern, characterized by two ascending parallel lines containing price action. This trend is recognized as bullish, consisting of higher lows and higher highs. Dogecoin price oscillates between these lines, with the lower line acting as support and the upper line as resistance.
Related reading
Currently, the price is approaching the midline of the channel, which provides significant resistance around $0.46. Key levels to watch include: Lower boundary support lies around $0.40. Upper boundary resistance is near $0.52, a potential catalyst for Dogecoin’s next major move.
The price target following an upward channel breakout can be estimated by measuring the height of the channel at its widest part and extending this distance upward from the breakout point. This projection suggests that DOGE could reach $0.64.
In addition to technical signals, there could be a major catalyst for DOGE price today, December 5. As reported by NewsBTC, Elon Musk and Vivek Ramaswamy are expected to address members of Congress. They are expected to present key proposals under the auspices of the Department of Government Effectiveness (DOGE). This development could have a substantial impact on the price of Dogecoin, as Elon Musk’s involvement in memecoin has historically influenced market sentiment.
At press time, DOGE was trading at $0.44.
Featured image created with DALL.E, chart from TradingView.com
