Dogecoin (Doge/USD) flashes bullish signals on short-term charts

Dogecoin (Doge/USD) continues to show bullish signals on both short- and long-term charts. Let's dive into how the current pattern affects the main actions in the future.

Dogecoin (Crypto:Doge) continues to show bullish signals on short- and long-term charts, as Meme Coin has been under increasing pressure before major actions.

Here are the current situation and possible future developments.

Current situation: According to technical analysis shared by crypto analyst Ali Martinez on X, Dogecoin forms an ascending triangle pattern on the 4-hour chart.

The rising triangle is a bullish chart pattern that occurs when a safe price action produces a series of higher lows, while the horizontal price level (acts as resistance) is tested but not broken.

Dogecoin's lowest price is $0.179 and its highest price is $0.185, and Meme Coin is currently trading slightly above the 50-cycle exponential moving average (EMA) of $0.1761. 50-cycle EMA helps traders determine safe short-term trend directions.

The relative strength index is also slightly above the neutral 50 points, indicating that there is still potential for upside before cryptocurrencies are considered excessive.

"It needs to break through this level to confirm the pattern and possibly push Dogecoin to the next Fibonacci level of $0.20, or 0.786 Fibonacci position," Martinez said.

According to analysts, Dogecoin is still near the key technical level on the 1-month chart, and the coin tests the lower boundary of the ascending channel.

"A move below the channel, currently at about $0.20, 0.786 Fibonacci level, could mark a collapse in bearish pressure and technical structure," Martinez said.

If Dogecoin is able to close the months above the $0.20 level and upward channel, it may intensify interest in Meme Coin.

"Dogecoin is approaching a critical moment as it may slide below the lower boundary of the long-term upward channel of the 1-month chart," the analyst said.

"In addition, it is close to the Fibonacci retracement level of 0.786, which is close to $0.20. Breakthrough of this support could trigger further downward pressure and ultimately lead to a series of cascading technical indicators flashing red."

Related links: Is Dogecoin a good investment?

Why it matters: Dogecoin is the largest Meme Coin and is a cryptocurrency with strong followers. The coin rose 138% from its previous year and traded at a small percentage of its all-time high of $0.74, which was reached in October 2021.

Dogecoin has been a topic of great concern to investors and institutions, including billionaire Elon Musk, who has talked about the coin many times.

Recently, an institution has purchased a large number of Dogecoin, which may help support the price of Meme Coin.

Dogecoin is also the theme of several derivative products, which may help increase traders’ interest in the coin.

Read the next post: Can Dogecoin and Shiba Inu get out of the cryptocurrency market crash amid volatility in Bitcoin and Ethereum prices?

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