The Dogecoin price action in the past 24 hours has been characterized by a fresh decline to retest support at $0.33. This recent decline in the past 24 hours is a continuation of the downtrend into 48 hours, which saw Dogecoin rejecting just below $0.40 after Bitcoin also rejected below $100,000 again.
However, technical analysis of Dogecoin’s price action still points bullish, and crypto analyst Trader Tardigrade has highlighted the recent 48-hour decline as a retest of a bullish pattern. According to the analyst, the Dogecoin price is only retesting the apex of an ascending triangle.
Dogecoin Price Retesting Ascending Triangle
Trader Tardigrade’s technical outlook is based on the Dogecoin 4-hour candlestick timeframe and looks at the meme coin’s price action since the middle of December. As shown in the price chart below, Dogecoin is currently retesting the apex of an ascending triangle, which is a bullish technical pattern often associated with upward price momentum. This ascending triangle pattern puts Dogecoin at a critical junction, as the retest could either rebound upwards or break below to the downside, which would invalidate the bullish outlook.
What makes this scenario particularly compelling is its resemblance to a previous ascending triangle breakout observed in November 2024. At that time, Dogecoin broke above the upper boundary of the triangle at approximately $0.14 in late October. The Dogecoin breakout was followed by a move to $0.17 before the price retraced downward to retest the breakout point. This retest proved successful, as the Dogecoin price rebounded sharply and eventually climbed to multi-year highs.
Is It Time To Buy Or Sell Dogecoin?
According to Trader Tardigrade, this is not the right time to short or sell stocks Dogecoin, as the cryptocurrency might be on the verge of a significant price shift. The similarity in chart patterns between the current price action and that of November 2024 adds weight to Trader Tardigrade’s outlook, and history could repeat itself. Nonetheless, the current retest is one to keep an eye on before making any final decisions, and its outcome will determine whether Dogecoin can replicate the bullish trajectory seen last year or face a reversal.
Current market sentiment also supports the possibility of a renewed bullish trajectory for the Dogecoin price, latest by the end of January. Optimism across the cryptocurrency sector has been fueled by the anticipation of President-elect Donald Trump’s administration implementing its promised overhaul of crypto policies.
At the time of writing, the Dogecoin price is trending at $0.3383, reflecting a 2.5% decline over the past 24 hours. Despite this short-term dip, Trader Tardigrade predicts that a rebound from the ascending triangle’s apex could initiate a fresh upward surge. The analyst has set a price target of $0.95 for Dogecoin, which, if achieved, would mark a new all-time high for the meme coin.
