An analyst has explained how Dogecoin might have to hold strong above this level, if the memecoin has to avoid a 30% price drop.<\/p>\n
In a new post<\/a> on X, analyst Ali Martinez has shared a chart that shows where Dogecoin currently stands from a technical analysis (TA)<\/a> perspective. Below is the graph in question, showing the trend in the 1-day price of the memecoin.<\/p>\n From the chart, it\u2019s visible that the Dogecoin price has possibly been trading inside a triangular channel during the last few months. The channel hasn\u2019t appeared to be just any triangle-shaped one, either, but a special type called the Symmetrical Triangle<\/a>.<\/p>\n A Symmetrical Triangle forms whenever an asset observes consolidation between two trendlines converging at a roughly equal and opposite slope. The upper line of the pattern tracks lower highs in the price, and the lower one higher lows.<\/p>\n As the asset moves inside this channel, its range becomes narrower with time, until it shrinks down to a point at the apex. Generally, volatile moves are more likely to occur when consolidation tightens, so a breakout of the pattern becomes increasingly probable as the price approaches the tip of the triangle<\/p>\n Symmetrical Triangle breakouts can signal a continuation of the trend in the direction of the break. This means that a rise above the pattern can be a bullish sign, while a drop below it may be a bearish one.<\/p>\n As displayed in the chart, the 1-day price of Dogecoin has recently been nearing the end of the triangle, a potential sign that a breakout could be imminent. Currently, the memecoin is retesting the lower line, so it will be interesting to see whether the level holds or if this is where a break would finally happen.<\/p>\n Unlike the Ascending and Descending Triangles, two other popular types of triangular channels in TA, breakouts are usually considered to be equally probable in either direction for a Symmetrical Triangle. The reason is simple: consolidation occurs in an exactly sideways manner in this pattern. In contrast, the Ascending and Descending types slope upward and downward, respectively, which can bias the breakout direction.<\/p>\n Thus, even if Dogecoin is retesting the lower level right now, a rebound and then breakout from the upper line may also still be quite possible. That said, in the event that a bearish breakout does take place, things can be especially troubling for DOGE, as there is another level of importance just nearby.<\/p>\n