Key Takeaways
- Dogecoin appears to have developed a symmetrical triangle on its 4-hour chart.
- Transaction history shows that DOGE sits on stable support while facing stiff resistance.
- Only a 4-hour candlestick close above or below the $0.310-$0.326 would determine where prices are heading next.
Dogecoin looks ready for a volatile move as it moves towards the apex of a symmetrical triangle.
Dogecoin Is Primed for Major Move
Dogecoin could be ready for a breakout.
While some altcoins have entered price discovery mode, others continue consolidating within a tight range.
Dogecoin is one of the cryptocurrencies that has considerably slowed down its uptrend. The meme coin has been making a series of lower highs and higher lows since Aug. 12 without providing a clear signal of where it is heading next.
On DOGE’s 4-hour chart, it appears that the recent price action has led to the formation of a symmetrical triangle. As the seventh-largest cryptocurrency by market cap edges closer to the triangle’s apex, it signals that a significant price movement is underway.
A decisive 4-hour candlestick close above or below the $0.310-$0.326 range would likely define Dogecoin’s price trend.
Based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, more than 155,000 addresses have previously purchased nearly 13.6 billion DOGE between $0.317 and $0.326. Meanwhile, over 50,000 addresses hold roughly 9.4 billion DOGE purchased between $0.307 and $0.316.
Given the magnitude of this supply zone, it is reasonable to wait for either barrier to be broken before entering any long or short positions.
These targets are determined by measuring the triangle’s y-axis and adding it to the breakout point.
