Dogecoin Price Is Retesting The Apex Of The Ascending Triangle, Time To Buy Or Sell?

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Over the last 24 hours, the price of Dogecoin has fallen once more to test its support at approximately $0.33. This latest drop in the past day is an extension of the downward trend over the previous 48 hours, during which Dogecoin failed to hold above $0.40 after Bitcoin also fell short of the $100,000 mark again.

Nevertheless, the technical analysis of Dogecoin’s price movements remains optimistic, with crypto expert Trader Tardigrade identifying the recent 48-hour drop as a retest of a bullish trendline. In his view, the Dogecoin price is merely testing the peak of an ascending triangle formation.

Dogecoin Price Retesting Ascending Triangle

Trader Tardigrade’s perspective on Dogecoin is grounded in the analysis of its 4-hour price movements and focuses on the meme coin’s trends since mid-December. As demonstrated by the graph below, Dogecoin is at present revisiting the peak of an expanding triangle formation, a bullish technical indicator suggesting potential for increasing prices. This ascending triangle setup places Dogecoin at a crucial crossroads, as the retest may lead to a surge or a fall beneath, which would contradict the optimistic projection.

This situation shares similarities with a past Dogecoin price pattern that occurred in November 2024, which I’ll refer to as an ‘ascending triangle breakout’. During this period, Dogecoin surpassed the upper boundary of the triangle (around $0.14) towards the end of October. The breakout led to a rise in Dogecoin’s price to approximately $0.17. However, the price subsequently fell back to retest the breakout point. This retest turned out well, as Dogecoin experienced a significant rebound from that point and ultimately reached multi-year highs.

Is It Time To Buy Or Sell Dogecoin?

Based on Trader Tardigrade’s analysis, it might not be wise to short or sell Dogecoin at this moment, as the cryptocurrency could potentially experience a substantial price change. The current chart patterns bear a striking resemblance to those from November 2024, lending credence to Trader Tardigrade’s perspective. If history repeats itself, we might see a similar bullish trend as last year; however, it is crucial to monitor the ongoing retest closely before making any firm decisions. The outcome of this retest will ultimately decide whether Dogecoin will follow its previous bullish trajectory or encounter a reversal.

There’s a growing belief that Dogecoin prices may continue to rise aggressively, with some predicting it could happen before the end of January. This optimism in the cryptocurrency world stems from expectations that the incoming administration of President-elect Donald Trump might bring about significant changes in crypto policies.

As I type this, the value of Dogecoin stands at approximately $0.3383, representing a 2.5% drop over the last day. However, Trader Tardigrade anticipates that a potential rebound from the peak of the ascending triangle could trigger another upward spike. If his prediction holds true, this could lead to Dogecoin reaching a projected price of $0.95, setting a new record high for the meme currency.

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2025-01-10 01:11