Dogecoin Forms a Triangle, and Now Looks to Engineer a Bull Run if Buyers Can Fracture the Overhead Trendline
- PHPzOriginal
- 2024-08-13 18:16:17180browse
As the broader market recovery faces another hurdle, with Bitcoin flashing under $60K, altcoins are under stress.
Dogecoin price analysis reveals a bullish attempt to perform a V-shaped recovery. However, the overhead bearish influence keeps the bullish recovery under check. The higher low formation and the overhead bearish influence has led to two converging trend lines forming the triangle pattern. A triangle pattern relates to a volatility constriction and leads to trend continuation.
The triangle pattern is formed by the 40% drop in just 10 days of correction, which concluded on Black Monday last week, near the $0.0845 support level. However, the low was formed at $0.080, and since then, the price has increased by 30.18% in 8 days.
Currently, the Dogecoin price trades at $0.10507, near the overhead resistance trendline. Basing the Fibonacci retracement levels over the correction phase, the Dogecoin recovery run tests the 38.20% Fibonacci level at $0.10528. Using the Fibonacci retracement levels, the upside targets are at 50% ($0.11168), 61.80% at ($0.11807), 78.60% ($0.12717) and 100% ($0.13877).
In the 4-hour chart, the MACD and signal lines remain uncertain, moving sideways in positive territory. Coming to the on-chain indicators, IntoTheBlock shows 73% of Dogecoin holders making money at the current price. Meanwhile, 25% are at the money, and 26% of holders bought DOGE at prices higher than its current value.
Furthermore, 67% of Dogecoin holders have HODL $DOGE for more than a year. While just 2% of holders are new with less than 1 month of holding period. In the 4-hour chart, Dogecoin shows a bullish cycle, struggling to break above the overhead trendline, leading to a sideways shift. However, the underlying shift in momentum supports the possibility of a bullish breakout.
With a breakout run in Dogecoin fueled by the broader market recovery, bulls can reclaim the $0.12 mark shortly. On a larger horizon, $DOGE could find 1.618 Fibonacci levels at $0.17226 as a potential target. Hence, the current analysis reveals an upside potential of 65%.
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