Dogecoin price is currently correcting after two weeks of intense price increases this saw it hit $0.426 for the first time since its huge 2021 bull run. However, as is normal after such a crazy rally, Dogecoin price now appears to be undergoes a brief correction while a few holders begin to take profits or exit their positions altogether. Notably, Dogecoin price is down 8.5% in the last 24 hours and 13% since hitting $0.426.
Interestingly, this correction was announced by a crypto analyst on social media platform X. According to crypto analyst Kevin, the recent price action of Dogecoin has led to the creation of a strange Dogecoin. symmetrical triangular patternwhich could lead either to a correction or to a continuation of the upward movement.
Analyst Says Symmetrical Triangle Favors Price Correction
Dogecoin has started to consolidate, which is completely normal before a rally continues. As noted by crypto analyst Kevin using the 1-hour candlestick timeframe, Dogecoin has been consolidating since November 12. This consolidation was characterized by the creation of lower highs and lower lows, giving rise to a symmetrical triangular pattern.
Considering this is a bullish move, the symmetrical triangle has the highest high chance of breaking upwards. However, the analyst noted that there is a greater chance of a correction, especially due to the daily Relative Strength Index (RSI) signaling an overbought condition above 90. At the time of his prediction, Dogecoin was trading around 0.39 $. Since then, its price has fallen further, strengthening the case for a correction.
If the downward movement continues, Kevin identified a key support zone between $0.30 and $0.26, which aligns with the golden pocket retracement levels. This range represents a potential correction of 30-40% from Dogecoin’s recent high of $0.426. “This represents a 30-40% correction from the local high, which in a bull market is a perfect sized correction,” he said. said.
Keeping the lingering bullish sentiment in mind, Kevin recognized in a follow-up article, Dogecoin price could defy his expectations and he could be wrong about consolidation leading to a major correction.
He suggested the possibility that the symmetrical triangle may actually be a bull flag pattern, which is more commonly associated with bullish breakouts. If so, this trend could pave the way for an upside breakout that pushes Dogecoin price towards a guaranteed target of $0.90.
Current Status of Dogecoin Price
At the time of writing, Dogecoin is trading at $0.37, having declined by 8.5% over the past 24 hours. Nonetheless, Dogecoin is still on track to end November with the best monthly gains in over three years. The next few days will be crucial in determining how this plays out; if the consolidation phase resolves with a strong correction Or a rally to new heights.
Featured image created with Dall.E, chart from Tradingview.com