The price of Dogecoin (DOGE) is currently at a pivotal point, as seasoned analysts suggest that a substantial breakout could be on the horizon. Notably, the expert crypto analyst known as Rekt Capital has pinpointed a critical pattern on the DOGE/USD daily price chart. This pattern indicates a potential surge in Dogecoin’s value.
Can Dogecoin Confirm the Breakout?
An examination of Dogecoin’s daily chart uncovers an ascending triangle that has been taking shape over the past few weeks. Typically, this pattern is considered a bullish continuation signal, marked by a horizontal upper resistance line and a rising lower support line. This formation suggests mounting buying pressure, as each price retracement becomes less pronounced. This implies that buyers are eager to purchase at progressively higher lows.
The upper horizontal line of this triangle is positioned around $0.44, a level that has been tested multiple times and acts as a formidable barrier for upward movement. The ascending support trendline commences near $0.34 and rises gradually, forming the triangle’s lower boundary and underscoring increasing support levels.
Expert Insights from Rekt Capital
Rekt Capital underscores the significance of the current price action, stating, “Dogecoin has mirrored every Bitcoin move thus far. Now, it’s retesting the top of the Ascending Triangle as support. A successful retest here is crucial to precede a confirmed breakout.” Should this retest affirm the triangle’s upper resistance as a new support level, it could set the stage for a notable price surge.
To estimate the potential breakout target, one can measure the maximum height of the triangle—from the base near $0.34 to the top at $0.44—and project it upwards from the breakout point. This analysis suggests that Dogecoin could potentially reach or surpass the $0.54 mark.
4-Hour Chart Analysis: What to Expect
Another respected crypto analyst, Satoshi Flipper, offers insights based on the 4-hour DOGE/USD chart. He observes, “DOGECOIN/usdt 4 hour: DOGE has been consolidating for almost a month now, but this flawless ascending channel is filling out nicely, and the breakout is going to be EPIC, just wait.”
The chart demonstrates an ascending channel pattern, characterized by two parallel upward-sloping lines containing the price action. This pattern is recognized as bullish, formed by higher lows and higher highs. Dogecoin’s price has been oscillating between these lines, with the lower line acting as support and the upper line as resistance.
Key Levels to Monitor
Currently, the price is approaching the midline of the channel, providing significant resistance around $0.46. Key levels to watch include a lower boundary support near $0.40 and an upper boundary resistance around $0.52, which could be a potential catalyst for Dogecoin’s next major move.
The price target following an ascending channel breakout can be estimated by measuring the channel’s height at its widest part and extending that distance upward from the breakout point. This projection suggests that DOGE could rise towards $0.64.
Potential Catalysts for Dogecoin’s Price Movement
Adding to the technical signals, there’s potential for a major catalyst for DOGE’s price today, December 5th. According to reports from NewsBTC, Elon Musk and Vivek Ramaswamy are set to address members of Congress. They are expected to present key proposals under the auspices of the Department of Government Efficiency (DOGE). This development could significantly influence Dogecoin’s price, as Elon Musk’s involvement with the memecoin has historically swayed market sentiment.
As of the latest update, DOGE is trading at $0.44.
