DOGE Breaks Triangle Pattern, Analyst Warns of Next Leg Down

TL;DR

• Dogecoin breaks triangle formation, analyst warns price could fall toward $0.17 Fibonacci support level.
• Bitcoinsensus projects the next wave rally could send DOGE between $1.00 and $1.40 long-term.
• Futures open interest steady at $3.32B, while options trading surged as traders prepare positions.

Breakdown From Triangle Formation

Dogecoin (DOGE) has moved below a symmetrical triangle formation after weeks of sideways action. The move was flagged by market analyst Ali Martinez, who suggested the breakdown could pressure prices lower in the short term.

The chart points to resistance near $0.22, while immediate supports are located at $0.20 and $0.19. If the bearish move continues, the next target sits at $0.17, a level that matches the 1.272 Fibonacci extension. According to the analyst,

At the time of writing, DOGE was valued at around $0.22 with a 24-hour trading volume of $1.95 billion. The token has gained 1% in the past day, though it has slipped 3% over the week.

Opposing Outlooks From Market Analysts

While one view suggests a move toward $0.17, another long-term chart shared by Bitcoinsensus shows a potential rally. On the weekly timeframe, DOGE continues to track within a logarithmic uptrend channel.

Notably, the chart highlights a +290% surge from $0.08 to $0.23, followed by a +440% rise to $0.50. Based on this pattern, the next impulsive wave could lift prices between $1.00 and $1.40. The post noted,

DOGE is consolidating near $0.217 and has been forming higher lows that keep the long-term channel intact. Analysts view this as the base for a larger move, though short-term signals remain mixed.

Whale Activity and Futures Market

On-chain observations show whales are currently inactive. As Martinez stated,

Data from Coinglass adds further detail. Open interest in DOGE futures rose slightly by 1% to $3.32 billion, suggesting steady trader participation. At the same time, daily trading volume fell 14% to $5.05 billion, showing lighter participation.

Options activity has surged, with volume climbing 1,057% to $1.86K, while open interest increased 132% to $2.76M. These shifts suggest traders are positioning for the next move as DOGE stabilizes near support.

The post DOGE Breaks Triangle Pattern, Analyst Warns of Next Leg Down appeared first on CryptoPotato.