Dogecoin price action over the past 24 hours was characterized by a further decline to retest the support at $0.33. This recent drop over the past 24 hours is a continuation of the 48-hour downtrend, which saw Dogecoin reject just below $0.40 after Bitcoin also rejected below 100 again. 000 $.
However, technical analysis Dogecoin’s price action still indicates an uptrend, and crypto analyst Trader Tardigrade highlighted the recent 48-hour drop as a retest of an uptrend. According to the analyst, Dogecoin price is only retesting the top of an ascending triangle.
Dogecoin price retests ascending triangle
The Tardigrade trader’s technical outlook is based on the 4-hour Dogecoin candlestick timeframe and examines the meme coin’s price action since mid-December. As seen in the price chart below, Dogecoin is currently retesting the top of an ascending triangle, which is a bullish technical pattern often associated with upward price dynamics. This ascending triangle pattern places Dogecoin at a critical crossroads, as the retest could bounce higher or drop below, invalidating the bullish outlook.
What makes this scenario particularly compelling is its resemblance to a previous breakout of an ascending triangle seen in November 2024. At that time, Dogecoin broke the upper limit from the triangle to around $0.14 at the end of October. Dogecoin’s breakout was followed by a move to $0.17 before the price retraced lower to retest the breakout point. This retest proved successful, as Dogecoin price rebounded strongly and eventually reached multi-year highs.
Is it time to buy or sell Dogecoin?
According to Trader Tardigrade, this is not the case good time to sell short or short Dogecoin shares as the cryptocurrency could be about to see a significant price change. The similarity in chart patterns between current price action and that of November 2024 adds weight to the Tardigrade Trader’s outlook, and history could repeat itself. Nonetheless, the current retest is one to watch before making a final decision, and its outcome will determine whether Dogecoin can replicate the bullish trajectory seen last year or face a reversal.
Current Market Sentiment also supports the possibility of a new upward trajectory for the price of Dogecoin, no later than the end of January. Optimism in the cryptocurrency sector has been fueled by anticipation of President-elect Donald Trump’s administration implementing its promised an overhaul of crypto policies.
At the time of writing, Dogecoin price is trading at $0.3383, reflecting a 2.5% decline over the past 24 hours. Despite this short-term decline, trader Tardigrade predicts that a rebound from the top of the ascending triangle could trigger a new bullish surge. The analyst set a price target of $0.95 for Dogecoin, which, if achieved, would mark a new all-time high for the meme coin.
Featured image created with Dall.E, chart from Tradingview.com