A crypto analyst highlighted how Dogecoin has been stuck in a descending triangle recently, the decompression of which could potentially trigger a notable move.
Dogecoin continued to spiral in a descending triangle
In a new article on X, analyst Ali Martinez shared a descending triangle pattern that recently formed in the 4-hour price chart of Dogecoin. The descending triangle is a triangular consolidation channel from technical analysis (TA) that forms when an asset moves between two converging trendlines into a sharp decline.
A key feature of this pattern is that the lower trend line is parallel to the time axis. So, as the price moves within the channel, the upper end of its range gradually narrows.
Like other consolidation patterns in TA, the upper trendline of a descending triangle is also assumed to be a source of resistance, while the lower line is a source of support. A breakdown of either of these limits may imply a continuation of the trend in that direction.
The descending triangle is just one type of triangle that exists in TA. Another popular pattern is the Ascending Triangle, which involves the opposite case: a flat upper barrier and an ascending support line.
Now, here is the chart shared by Martinez that shows the descending triangle that Dogecoin has been stuck in recently over a 4-hour time frame:
As shown in the chart above, Dogecoin has been gradually moving down in the shape of a descending triangle over the past two months. The asset has retested both trendlines several times, but so far it has failed to find a break.
The analyst initially shared the trend last week, but until then, not much has changed for DOGE as it remains firmly trapped in the channel. In this latest article, Martinez noted that this triangle could pave the way for a movement of around 29% for memecoin.
It is often assumed that triangle breaks lead to movements equal in degree to the height of the triangle; the DOGE descending triangle involved a 29% swing between its highest and lowest points, hence the analyst figure for the breakout.
Currently, it is unclear when Dogecoin might escape from the channel, but as the chart shows, the asset is slowly approaching the top of the triangle. In this region, consolidation is tight, so breakouts may become more likely. It now remains to be seen in which direction the coin will leave the channel and whether a sustained move will follow.
DOGE Price
At the time of writing, Dogecoin is floating around $0.093, up over 2% in the last 24 hours.
