- Dogecoin is stuck between $0.24 and $0.22, and traders believe a breakout could drive a massive 40 percent price swing soon.
- Analysts say Dogecoin is holding strong higher lows, showing the long-term trend may stay bullish even if short-term pressure builds.
- Dogecoin’s muted trading volume signals calm before storm as bulls eye $0.287 and long-term targets stretch to $1.30 this cycle.
The market is at a turning point for Dogecoin once more, and traders are waiting for the next big move. The price action of the cryptocurrency is alternating between the $0.2400 resistance and the $0.2200 support, forming a descending triangle.
This zone of compression signals that the market is waiting for a clear breakout. Traders see this formation as a possible trigger for a sharp 40% price swing, depending on the direction of the breakout.
Source: Ali
Technical Signals at Play
The 12-hour chart highlights key Fibonacci retracement levels guiding the current market sentiment. Dogecoin is hovering near the 0.5 retracement at $0.21841, which often acts as a strong support.
Furthermore, during the most recent surge, the 0.618 retracement at $0.23304 already displayed indications of resistance. Traders are hence keeping a careful eye on whether the 0.5 level can hold. The price may move toward the 0.236 retracement, which is close to $0.18892, if there is a drop below.
The market’s hesitancy is further supported by the modest trade activity. But during a period of consolidation, lower volume frequently comes before high volatility.
As a result, traders are bracing for a robust response when the triangle’s apex is achieved. Bulls could regain control of the upward trend and retest highs around $0.28746. However, failing to provide assistance can encourage a more severe deterioration.
Long-Term Perspective
Besides the short-term triangle setup, the weekly chart offers a broader perspective. Analyst Shan Specter notes that Dogecoin continues to hold higher lows. This pattern indicates that despite short-term pressure, the long-term uptrend remains intact. Additionally, the use of Bollinger Bands and MACD highlights potential volatility spikes ahead.
Source: Shan Specter
Moreover, Specter believes Dogecoin could still aim for gains this cycle. He points to a reasonable target between $0.70 and $1.30, supported by Elon Musk’s consistent backing. Consequently, long-term investors may see this consolidation as a retest before a final expansion wave.
For traders, Dogecoin’s consolidation now has significant weight. The descending triangle will determine the short-term picture, while the long-term charts remain positive. As a result, the upcoming breakout will determine both the short-term course and the long-term momentum.
