Dogecoin Price Breaks Out of Symmetrical Triangle, Target Set Above $0.37
A crypto analyst known as ‘CryptoSanders9563’ reported on TradingView that Dogecoin's price has broken out of a symmetrical triangle pattern, indicating a bullish continuation. This breakout is expected to trigger a price increase to a target above $0.375.
Symmetrical Triangle Driving Dogecoin Price Above $0.37
CryptoSanders presented a Dogecoin price chart illustrating the symmetrical triangle formed by converging trendlines. The price broke above the upper trendline around $0.316, confirming a bullish breakout and signaling potential for a surge above $0.375.
A symmetrical triangle is a chart pattern indicating a consolidation phase before a breakout. Breaking above the upper trendline typically signals the start of an upward trend, while breaking below the lower trendline indicates a bearish phase.
CryptoSanders noted that Dogecoin’s breakout is supported by trading above critical moving averages, specifically the 50 and 200 Exponential Moving Averages (EMA). These indicators suggest continued upward momentum for Dogecoin. The convergence of these moving averages may provide dynamic support for Dogecoin's price.
The analyst identified $0.375 as the next significant resistance level for Dogecoin, which also serves as a psychological threshold for profit-taking among investors. If Dogecoin can surpass this resistance, it could lead to a more substantial price rally. Conversely, failure to breach this level may result in a downtrend towards the $0.306 support level.
Dogecoin Trade Setup and Strategy
CryptoSanders outlined a trade strategy for investors interested in capitalizing on the symmetrical triangle breakout. An entry point is set at $0.316 after the breakout confirmation, with a stop loss at $0.306 to limit downside risk.
The target of $0.375 remains the primary profit-taking zone, aligning with the identified resistance area on the chart. This trade setup provides a favorable risk-to-reward ratio, allowing potential significant profits as long as Dogecoin maintains its position above the breakout level and the stop loss is adhered to.
