An analyst has pointed out how Dogecoin could end up seeing an extended drawdown, based on this Ascending Triangle pattern forming in its hourly price.
Dogecoin Has Lost The Support Of An Ascending Triangle Recently
In a new post on X, analyst Ali Martinez has discussed an Ascending Triangle pattern for Dogecoin. The “Ascending Triangle” refers to a technical analysis (TA) formation that appears when the price of an asset consolidates inside a triangular region.
The ‘Ascending’ in the pattern’s name signifies that this consolidation occurs towards a net upside. There are two trendlines in this pattern: an upper level that is parallel to the time-axis, tracing successive highs, and a lower one that has a positive slope, connecting successive higher lows.
Like any other consolidation pattern in TA, the upper level of the triangle is likely to serve as a source of resistance, while the lower level acts as support. A breakout from either of these boundaries can indicate a continuation of the trend in that direction.
The Ascending Triangle is not the only type of triangular pattern in TA; two other popular varieties include the Descending Triangle and Symmetrical Triangle. The former is the opposite of the Ascending Triangle, forming when the price consolidates downward. The latter, the Symmetrical Triangle, represents a midpoint between the Ascending and Descending variants, with both trendlines converging.
Recently, Dogecoin’s 1-hour price appeared to follow an Ascending Triangle. The chart shared by Martinez illustrates this pattern for the memecoin:
As visible in the chart, the hourly Dogecoin price made a retest of the lower line of this Ascending Triangle; however, it seems the coin has been unsuccessful in maintaining support, as it slipped through.
From the graph, it is evident that the memecoin was close to the apex of the triangle when this break occurred. As consolidation narrows towards the end of the pattern, breakouts become more imminent.
A breakout can often signify a potential continuation of the trend in the breakout’s direction. Hence, DOGE has recently encountered a bearish signal. Typically, the length of a move following an Ascending Triangle breakout corresponds to the height of the triangle itself, implying a potential 16% price swing for the coin as a result of this pattern.
DOGE Price
Dogecoin has exhibited relatively flat movement in the past week, with its price hovering around the $0.16 mark.
