An analyst has pointed out how Dogecoin is consolidating within a triangle pattern that could set up a 40% move for the memecoin’s price.
Dogecoin Is Trading Inside A Symmetrical Triangle Pattern
In a new post on X, analyst Ali Martinez has talked about what the triangle that Dogecoin’s 12-hour price is trading inside right now could foreshadow for it. A triangle is a consolidation channel in technical analysis (TA) that forms whenever the price of an asset trades between two converging trendlines.
The upper line of the pattern is likely to be a source of resistance, while the lower one that of support. If the price manages to break past either of these boundaries, it may see a sustained trend in the direction of the break.
Triangles can be of a few different types, but the one that’s of interest here is the Symmetrical Triangle. This variant appears when the trendlines involved are approaching each other at a roughly equal and opposite angle. In other words, the Symmetrical Triangle corresponds to a period of consolidation in a range that tightens with time in an exactly sideways manner.
Now, here is the chart shared by Martinez that shows the pattern that the 12-hour price of Dogecoin has been stuck inside for the past month or so:
As displayed in the above graph, Dogecoin found rejection at the upper level of the Symmetrical Triangle a few days back and has since declined toward its midway point.
Generally, triangle breakouts become more likely to happen the closer the price gets to the apex of the pattern. From the chart, it’s visible that DOGE’s 12-hour price is already a decent way into the triangle, meaning that a breakout may be turning increasingly probable.
Based on the pattern, the analyst believes the coin is preparing for a 40% move. But which direction will this move occur in? Well, in a Symmetrical Triangle, a breakout is usually equally likely to occur in either direction, since the pattern involves no bias.
On top of that, the memecoin is currently also an equal distance away from either trendline, so it’s hard to say which one it will retest next. As such, it only remains to be seen which way Dogecoin will escape the Symmetrical Triangle from and whether any large move will follow.
In another X post, Martinez has also discussed about a triangle pattern forming in another altcoin, Worldcoin (WLD).
As is apparent from the above chart, Worldcoin has just slipped under the lower level of this triangle. “Worldcoin $WLD breakout from triangle formation points toward $0.50!” notes the analyst.
DOGE Price
At the time of writing, Dogecoin is trading around $0.21, down more than 3% over the past week.
Source: https://www.newsbtc.com/news/dogecoin/dogecoin-triangle-break-spark-40-analyst/
