The Dogecoin price has been experiencing a correction phase after a two-week period of intense price upticks that saw it reach $0.426 for the first time since its massive bull run in 2021. This correction is a normal occurrence following such a rapid rally, with some holders taking profits or exiting their positions. The current Dogecoin price is down by 8.5% in the past 24 hours and 13% since reaching its recent high.
A crypto analyst on social media platform X predicted this correction. According to the analyst, recent price action has resulted in the formation of a symmetrical triangle pattern for Dogecoin, indicating a potential correction or continued upward movement.
The symmetrical triangle pattern favors a price correction according to the analyst. Dogecoin has been consolidating since November 12, characterized by lower highs and higher lows, forming the symmetrical triangle pattern. While the pattern typically suggests an upward breakout, the analyst noted that a correction is more likely due to the daily Relative Strength Index (RSI) signaling an overbought condition above 90. The analyst identified a key support zone between $0.30 and $0.26 if the downward movement continues, representing a potential 30-40% correction from Dogecoin’s recent top at $0.426.
Despite the potential for a correction, the analyst acknowledged the possibility of a bullish breakout if the symmetrical triangle pattern turns out to be a bull flag pattern. This scenario could drive the Dogecoin price towards a target of $0.90.
As of the latest update, Dogecoin is trading at $0.37, down by 8.5% in the past 24 hours. Despite the recent decrease, Dogecoin is still set to have the best monthly gains in over three years by the end of November. The upcoming days will be crucial in determining whether the consolidation phase leads to a correction or a rally to new highs.
The chart from Tradingview.com shows the struggles of DOGE price amid bearish pressure, indicating the uncertainty surrounding Dogecoin’s current price movement. The next few days will provide more clarity on whether Dogecoin will continue its upward trajectory or experience a significant correction.
In conclusion, the Dogecoin price is currently undergoing a correction phase after a period of intense price upticks. The symmetrical triangle pattern suggests the possibility of a correction, but a bullish breakout could also be on the horizon. The next few days will be crucial in determining the direction of Dogecoin’s price movement and whether it will continue its upward trend or experience a significant correction.
