Dogecoin Forms Bullish Triangle Pattern, Analyst Reveals The Next Target

Dogecoin Poised for Further Gains as Bullish Triangle Pattern Emerges

Dogecoin is experiencing a surge in momentum following Bitcoin's recovery above $71,000. This has ignited a wave of euphoria across the crypto market, propelling DOGE above the $0.16 resistance.

Bullish Triangle Pattern Signals Upside Potential

Crypto analyst Lingrid has identified a bullish triangle pattern on Dogecoin's chart. This formation has historically been associated with price appreciation.

The analyst notes that Dogecoin has been consolidating below the upper boundary of the triangle. This pattern typically leads to a price squeeze, which is highly bullish.

Lingrid has identified a range zone around $0.15 that was crucial to the triangle's formation. The emergence of a range suggests accumulation is underway, signaling the potential for a breakout.

Additionally, Dogecoin has been creating higher lows, further indicating a sustained bullish trend. "If the price breaks through the downward trendline, we can expect a bullish rally to follow," Lingrid states.

DOGE Remains Bullish

This week, Dogecoin has exhibited strong bullish momentum as investor interest has shifted towards the meme coin. Trading volume has surged over 130% in the past week, reaching nearly $2 billion.

Concurrently, there has been a significant increase in Dogecoin's open interest, suggesting that traders are betting heavily on its price. Coinglass data shows an 18% increase in open interest over the past 24 hours, reaching $921.4 million.

Historically, an increase in open interest has often correlated with a price rise. Therefore, it is anticipated that Dogecoin's rally will continue.

Currently, DOGE bulls maintain control of the market, driving the price over 8% in the past day. It is currently trading at $0.164, marking a 122% increase over the past year.

Source: Tradingview.com Featured image from Dall.E, chart from Tradingview.com