- Dogecoin bounces off from the support at $0.04, setting the ground for gains above $0.11.
- DOGE is looking forward to a triangle breakout targeting a more than 100% move.
- The upswing may fail to materialize if the immediate 50 SMA support is broken.
Dogecoin is teetering at $0.05 after recovering from the dip that occurred across the market earlier in the week. Before the broad-based declines, the ‘Meme Coin’ had been losing ground below a descending trendline.
The support at $0.045 played a vital in stopping the declines, allowing bulls to focus on higher levels. A breakout from a descending triangle is expected to elevate Dogecoin to new all-time highs.
At the time of writing, DOGE is dancing between the 50 Simple Moving Average (SMA) on the 4-hour chart and the 100 SMA. It has already broken out of the triangle pattern. The 100 SMA currently limits its upside.
Note that triangles are known to have exact breakout targets measured from the patterns highest to the lowest points. While descending triangles are generally bearish, they can also result in bullish price actions.
As for Dogecoin, trading above the 100 SMA will live open-air for exploration. It is worth keeping in mind that some hurdles are expected at $0.07, $0.09, and $0.1. However, if a breakout materializes, DOGE will rise to a new record high of around $0.11.
DOGE/USD 4-hour chart
On the other hand, it is worth keeping in mind Dogecoin is resting on a robust support area reinforced by the triangle’s hypotenuse and the 50 SMA. Holding above this region is critical to sustaining the uptrend. However, declines back to $0.045 may come into the picture, and investors could also panic-sell, adding to the bearish pressure.