- Dogecoin in the spotlight as a triangle pattern highlights the potential for a new tide.
- Evaluating the state of confidence in Dogecoin.
Dogecoin [DOGE] is rapidly approaching an important price range that could either result in a breakout or a breakdown. This expectation is based on its long-term price pattern which takes the shape of a descending triangle.
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A recent analysis revealed that Dogecoin is rapidly approaching a breakaway from the triangle pattern. The latter goes all the way back to the memecoin’s 2021 peak and has since been underpinned by descending support.
#Dogecoin is approaching the apex of this multi-year descending triangle formation.
A weekly candlestick close above $0.0835 could trigger the beginning of a new $DOGE bull run, potentially toward $1. Yet, we must watch out for the $0.0482 support, as any sign of weakness… pic.twitter.com/Emcwfyv6cE
— Ali (@ali_charts) October 13, 2023
According to the analysis, the breakout and subsequent price direction are still a toss-up. In other words, there is still a chance that it might kick off the next major rally. On the other hand, there still stood the risk of more downside especially now that the crypto market and the risk-on asset segment in general are facing a liquidity crunch.
DOGE’s short-term outlook suggested that more sell pressure could be on the cards since it was yet to dip into oversold territory. The next short-term support range could occur between the $0.056 to $0.053 price bracket if sell pressure prevails. Dogecoin exchanged hands at $0.058 at press time.
Source: TradingView
On the flip side, Ali’s analysis suggested that it could go as high as $1. This was the target that it failed to achieve during the previous bull run in 2021. But is it really possible for Dogecoin to rally to the $1 price tag?
Well, mainstream cryptocurrencies have historically rallied past previous highs and this could turn out true for the grandfather of the memecoins.
Are Dogecoin’s good days behind or yet to come?
The bear market has brought forth a decline in interest in mainstream memecoins. As such, there are genuine concerns about whether it can sum up enough demand to push back to previous highs and possibly higher. DOGE’s marketcap may offer a confidence boost since it still has over $8.2 billion, suggesting that there are still many believers holding for the long term.
Source: Santiment
Dogecoin’s strong marketcap during the bear market was a testament to the fact that there was still confidence in its future. This suggested that the next bull run could attract a resurgence of demand. In which case the now heavily discounted prices could be seen as quite attractive.
How many are 1,10,100 DOGEs worth today
Despite the above data, Dogecoin’s future was still within the realm of uncertainty. Its latest performance stood in line with what we have witnessed with other major cryptocurrencies. It will be interesting to see whether demand will recover once overall market conditions start improving.
