- Dogecoin in the spotlight as a triangular pattern highlights the potential for a new tide.
- Assessing the state of trust in Dogecoin.
Dogecoin [DOGE] is rapidly approaching an important price range that could result in a breakout or collapse. This expectation is based on its long-term price pattern, which takes the shape of a descending triangle.
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A recent analysis revealed that Dogecoin is quickly approaching a breakout of the triangle pattern. The latter dates back to memecoin's peak in 2021 and has since been supported by descending support.
#Dogecoin is approaching the apex of this multi-year descending triangle formation.
A weekly candle close above $0.0835 could trigger the start of a new $DOGE bull run, potentially towards $1. However, we must keep an eye on the support at $0.0482, as any sign of weakness... pic.twitter.com/Emcwfyv6cE
- Ali (@ali_charts) October 13, 2023
According to the analysis, the breakout and subsequent price direction are still an uncertain matter. In other words, there is still a chance that it will kick off the next big rally. On the other hand, there is still a risk of further downside, especially now that the cryptocurrency market and the broader risk asset segment are facing a liquidity crisis.
DOGE's short-term outlook suggested that there could be more selling pressure at play as it had not yet fallen into oversold territory. The next short-term support range could occur between the $0.056 to $0.053 price range if selling pressure prevails. Dogecoin changed hands at $0.058 at the time of this publication.
Source: TradingView
On the other hand, Ali's analysis suggested it could go as high as $1. This was the goal that he failed to achieve during the previous bull run in 2021. But is it really possible for Dogecoin to reach the price of $1?
Well, major cryptocurrencies have historically broken past highs and this could prove true for the granddaddy of memecoins.
Are the good days of Dogecoin behind us or are they yet to come?
The bear market has caused a decline in interest in mainstream memecoins. As such, there are genuine concerns about whether it can build up enough demand to pull back to previous highs and possibly further. DOGE's market capitalization may offer a boost of confidence as it is still over $8.2 billion, suggesting there are still many believers in the long-term portfolio.
Source: Sentiment
Dogecoin's strong market capitalization during the bear market was a testament to the fact that there was still confidence in its future. This suggested that the next bull run could attract a resurgence in demand. In which case, the now heavily discounted prices could be considered quite attractive.
how many are 1,10,100 DOGE worth today
Despite the above data, the future of Dogecoin was still within the realm of uncertainty. His latest performance was in line with what we have witnessed with other major cryptocurrencies. It will be interesting to see if demand will recover once overall market conditions begin to improve.
