Dogecoin’s price motion is on a correction path within the weekly timeframe, with the cryptocurrency currently down by about 13% prior to now seven days. Although the broader crypto market sentiment appears positive, the king of meme coins is yet to make the most of this and push above the $0.4 mark.

Technical evaluation of the DOGE price chart shows that the cryptocurrency is fluctuating in an ascending triangle, which could possibly be dangerous for the value trajectory moving forward. 

DOGE’s Ascending Triangle Pattern: Opportunity Or Risk?

Andrew Griffiths, a crypto analyst on social media platform X, noted that Dogecoin is currently fluctuating up and down in an ascending triangle pattern. This pattern has been in play because the middle of December, and Dogecoin has repeatedly bounced off each the upper and lower trendlines of this pattern.

In his evaluation, Griffiths noted that the ascending triangle currently shaping DOGE’s price movement holds each promise and danger. Historically, this pattern is usually known to eventually result in a breakout to higher levels, but it surely also has the likelihood of sharp declines if the value breaches key support zones throughout the pattern. 

Naturally, the bullish trajectory ought to be the case, but Dogecoin’s lingering flunctuation throughout the pattern suggests that the meme coin might initially trend downwards, even when it were to eventually go on one other rally. Griffiths mentioned that optimism following Donald Trump’s election has created a positive broader market sentiment, which could support Dogecoin’s upward momentum. Nonetheless, he emphasized that this optimism won’t shield the meme coin from the potential volatility tied to its lingering price motion inside this setup.

Can Dogecoin Rebound Upwards From Here?

On the time of writing, DOGE is trading at $0.36, reflecting a 2.6% gain prior to now 24 hours after rebounding from $0.34. Nonetheless, this each day recovery has done little to offset its broader performance, as Dogecoin stays down 13.2% over the past week. Evaluation of recent price movements reveals that the meme coin has faced repeated rejections at a downward-sloping trendline prior to now seven days.

Because it stands, DOGE is now trying to break above this downward sloping trendline again. One other rejection here will extend the downward price movement. The opinion on this case is that Dogecoin could have already topped this cycle, which might lead to a different prolonged correction towards the $0.22 mark.

The opposite end result is that Dogecoin breaks out of the trend line and go on an upward move from here. That is the more bullish option. In line with technical evaluation by crypto analyst Kevin (@Kev_Capital_TA), that is the more likely scenario for Dogecoin. He noted that despite the downtrend, DOGE remains to be trading above the macro golden pocket. Nonetheless, he did note that this scenario would depend totally on Bitcoin making the bullish move first.

Featured image from Unsplash, chart from Tradingview.com