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Dogecoin (DOGE) price is at a critical juncture as technical analysts point towards a potentially significant breakout. Renowned crypto analyst Rekt Capital has identified a fundamental pattern on the daily price chart of DOGE/USD, suggesting an imminent rise.
Will Dogecoin Price Confirm Breakout Today?
Dogecoin’s daily chart reveals an ascending triangle formation that has been developing over the past few 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 building buying pressure, as each price pullback becomes shallower, implying that bulls are willing to buy at higher lows.
The upper horizontal line of the triangle sits at approximately $0.44, a level that has been tested several times and serves as a major barrier to the upward movement. The ascending support trend line starts around $0.34 and rises gently, forming the lower boundary of the triangle and highlighting rising support levels.
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Rekt Capital emphasizes the importance of the current price action, stating: “Dogecoin has followed all Bitcoin so far. Now we retest the top of the Ascending Triangle for support. “A successful retest here is crucial to precede a confirmed leak.” If this retest solidifies the triangle’s upper resistance as a new support level, it could pave the way for a substantial price increase.
The possible breakout target can be calculated by measuring the maximum height of the triangle (from the base near $0.34 to the top at $0.44) and projecting it up from the breakout point. This suggests that Dogecoin could reach or surpass the $0.54 mark.
Dogecoin Price Analysis (4-hour chart)
Another prominent crypto analyst, Satoshi Flipper (@SatoshiFlipper), has provided information based on the DOGE/USD 4-hour chart. He grades: “DOGECOIN/usdt 4 hours: DOGE is still consolidating, for almost 1 month now, but this impeccable ascending channel is filling up nicely and the breakout will be EPIC, just wait.”
The chart illustrates an ascending channel pattern, characterized by two parallel upward-sloping lines containing price action. This pattern is recognized as bullish, made up of higher lows and higher highs. Dogecoin price has been oscillating between these lines, with the lower line acting as support and the upper line as resistance.
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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 bound resistance is near $0.52, a potential catalyst for Dogecoin’s next big move.
The price target after a breakout of the ascending channel can be estimated by measuring the height of the channel at its widest part and extending that distance upward from the breakout point. This projection suggests that DOGE could rise towards $0.64.
In addition to technical signals, there could be a major catalyst for DOGE price today, December 5. As NewsBTC reported, Elon Musk and Vivek Ramaswamy will address members of Congress. They are expected to present key proposals under the auspices of the Department of Government Efficiency (DOGE). This development could have a substantial impact on the price of Dogecoin, as Elon Musk’s involvement with the 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
