Dogecoin (DOGE) has triggered bearish signals after breaking below a critical ascending triangle pattern, suggesting a potential 16% price decline ahead. Technical analyst Ali Martinez’s latest analysis reveals concerning developments in DOGE’s hourly chart that could spell trouble for the popular memecoin.
Technical Analysis Shows Bearish Break
The cryptocurrency, currently trading around $0.16, has failed to maintain support at a crucial technical formation. Martinez identified an ascending triangle pattern on the hourly timeframe, traditionally considered a bullish pattern when properly maintained. However, DOGE’s recent break below the pattern’s support line signals a significant bearish reversal.
This technical development comes amid broader concerns for meme coins, as highlighted in a recent report where Cathie Wood predicted most meme coins will become worthless. The timing of this bearish pattern could validate these concerns for DOGE holders.
Understanding the Pattern Breakdown
The ascending triangle pattern showed:
- A horizontal resistance line at the top
- An upward-sloping support line
- Decreasing volume before the breakdown
- Clear break below support near the pattern’s apex
Based on traditional technical analysis principles, the projected downside target is calculated by measuring the height of the triangle and projecting it downward from the breakdown point. This methodology suggests a potential 16% decline from current levels.
Key Support Levels to Watch
As previous analysis has shown, DOGE faces critical support levels at:
- $0.143 – Primary support level
- $0.134 – 16% downside target
- $0.128 – Historical support zone
Market Context and Trading Volume
Trading volume has remained relatively flat over the past week, with DOGE maintaining its position around $0.16. This lack of decisive momentum in either direction has left the cryptocurrency vulnerable to technical breakdowns.
FAQ
What caused the Dogecoin price breakdown?
The breakdown occurred due to a failure to maintain support within an ascending triangle pattern, combined with decreasing buying pressure and overall market uncertainty.
How low could Dogecoin go?
Technical analysis suggests a potential 16% decline, which would take DOGE to approximately $0.134.
Is this a good time to buy Dogecoin?
Given the current technical setup and bearish signals, traders might want to wait for price stabilization or clear reversal signals before entering new positions.