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A triangle pattern on Dogecoin's 4-hour chart hints at a potential price breakout, according to Ali, a crypto analyst.
In an X post, Ali hinted at a Dogecoin breakout ahead as the price continues to consolidate inside a descending triangle.
For context, a descending triangle is a chart pattern characterized by a series of lower highs and a flat support level. The lower highs indicate that more sellers are gradually entering the market as they are willing to accept a lower price in order to establish a short position. This creates selling pressure as the price consolidates, moving toward the apex. In terms of breakouts, this pattern is also somewhat ambivalent, as the escape from the descending triangle pattern can happen in both directions. While downward breakouts can occur, upward ones seem to be more reliable.
Along these lines, Ali noted that as the Dogecoin price approaches the apex of the triangle, the structure is becoming increasingly compressed and a breakout could be getting closer. He pointed to $0.095 as the breakout level he is closely watching, with a potential surge causing Dogecoin to surpass ten cents and ultimately erase a zero from its price tag. Ali noted that a 4-hour close above $0.095 could confirm a bullish breakout and trigger a rally toward $0.106.
Dogecoin key levels emerge
The $0.1 level remains significant as it marks the current resistance of Dogecoin's rally. Dogecoin's surge in mid-August halted at $0.1 before it fell.
Dogecoin tested $0.106 on September 21; massive buying pressure saw it attain $0.102 on September 20 before it climbed further, but this momentum could not be sustained, with Dogecoin falling afterwards.
Dogecoin proceeded to a lower high at $0.095 after its price fell from a high of $0.10 on August 22. The drop from a high of $0.106 found a lower high at $0.098. This suggests the key levels Dogecoin might need to surpass en route to $0.1 are $0.095 and $0.098.
At the time of writing, Dogecoin was attempting a recovery following a selloff in the past week, up 0.93% in the last 24 hours to $0.094.
In the coming days, traders will pay close attention to a potential golden cross signal shaping up on Dogecoin's daily chart.