Dogecoin Consolidation: Symmetrical Triangle Signals Potential Reversal

Dogecoin Consolidation: Symmetrical Triangle Signals Potential Reversal

Dogecoin (DOGE) has witnessed a significant downturn in the wake of Bitcoin's post-halving correction. Over the past five days, Dogecoin has declined by 11.17%, falling from a peak of $0.164 to $0.146.

Despite this decline, market indicators suggest a potential reversal. Dogecoin's price is currently testing crucial monthly support within a symmetrical triangle pattern. This pattern has emerged from the convergence of two trendlines on the daily chart, indicating a period of consolidation.

At its current price of $0.145, Dogecoin has demonstrated resilience at the lower trendline of the triangle, as evidenced by a notable rejection characterized by a long-tail formation. Such instances have historically served as pivotal moments for bullish reversals, attracting significant interest from potential buyers.

Market data analysis reveals a divergence in wallet activity between Bitcoin and altcoins like Dogecoin.

The total amount of non-empty #Bitcoin wallets are rapidly growing despite choppy prices. #Altcoin wallets for assets like #Dogecoin have flattened after enormous rises earlier this year. #Cardano is one of the few networks to see active wallets drop. https://t.co/itg9qMes7c pic.twitter.com/yrOlEQw3jy— Santiment (@santimentfeed) April 27, 2024

While the number of active non-empty Bitcoin wallets continues to rise, indicating sustained interest in the flagship cryptocurrency despite its inherent volatility, altcoin wallets, particularly those associated with Dogecoin, have experienced a plateau in activity following earlier spikes in the year.

For Dogecoin to establish a definitive trend, a breakout from either of the triangle's boundaries is essential. A potential upward breakout could accelerate buying momentum and propel the asset toward $0.2.

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