Analyst Says Doge is in Final Consolidation, $0.39 Next?

Analysts Predict Dogecoin Price Potential Breakout

Dogecoin (DOGE) experienced notable price fluctuations over the past 24 hours, with a 4.5% decrease in value. The cryptocurrency briefly surged to $0.241 before undergoing a sharp decline that took it below $0.225. 

However, signs of recovery have emerged as Dogecoin's price begins to climb back toward $0.225. Analysts, including Trader Tardigrade, suggest the token might be nearing the end of a consolidation phase, potentially signaling a breakout.

DOGE Price Action: A Symmetrical Triangle Forms

The DOGE price chart exhibits the pattern of a symmetrical triangle, or a consolidation period. Price movement over the last 24 hours evidence DOGE bouncing between the resistance at $0.240 and the support at $0.220. 

Source: X

A symmetrical triangle is an indicator of balancing between buying and selling pressure, with volatility slowly diminishing as the price nears the apex of the formation. This is a precursor pattern for a breakout but the direction remains unclear until the triangle is completed.

The analyst Trader Tardigrade on X confirmed the observation and argues that price action seems to be in the final stages of consolidation and a possible "pump" could follow if there were a breakout. This price action echoes an earlier consolidation and indicates that DOGE could be getting ready for another massive move. In fact, similar moves have been witnessed after these consolidation phases. 

Past Breakouts Indicate Possible Gains

More recent price action in Dogecoin resembles a pump this year. Dogecoin had an upsurge from just about $0.180 to $0.250 after breaking through a similar consolidation pattern in April and May. 

The second great surge came in July when the price went from $0.170 to near $0.290, once again after a phase of consolidation. Such previous breakouts demonstrate that the possibility for great gains exists should Dogecoin breach the present resistance.

The price is currently at resistance at around $0.240. If DOGE breaks out of this level, the next target would be $0.300, if not higher. The breakout could potentially even aim for the $0.39 range as per the previous price action.

TD Sequential Buy Signal Adds to Optimism

Besides that symmetrical triangle pattern, another technical indicator points toward a potential reversal. Looking at Dogecoin's 60-minute chart, Ali Martinez notes that a TD Sequential buy signal is flashing, which bodes well for a price bounce. The TD Sequential is basically an exhaustion indicator-the idea being that once certain conditions are met, the trend we've been following may very well reverse.

Source: X

In this case, after a prolonged downtrend with mostly solid black candlesticks, a buy signal was generated by the TD Sequential indicator. The signal arrived after the ninth bar in the sequence, suggesting that the market was nearly done with its present downtrend. That buy signal strongly hints at a price reversal, which complements the potential upward bounce. 

Dogecoin is currently straddling a crucial support line somewhere between the $0.2215-$0.223 range. This is vital because, if prices continue, it could push into an oversold graveyard, increasing the probability of a bounce. 

The combination of the symmetrical triangle pattern and the TD Sequential buy signal suggests that Dogecoin price may be positioned for a short-term recovery.