Cryptocurrency trader Crypto Tony has unveiled that Dogecoin (DOGE) is currently undergoing a retest of the upper boundary of a long-term descending triangle on its weekly chart. According to the analyst, if DOGE can maintain its position above this bearish chart pattern in the upcoming weeks, it has the potential to trigger a significant rally in meme coins.
The market capitalization of meme coins as a whole has witnessed a notable increase of 3.04%, coinciding with a broader rise in market cap of 2.51% during the same period. As a result, the meme coin market now boasts a valuation of around $16.4 billion.
Leading the pack, DOGE has managed to achieve a gain of 1.76%, which has also helped elevate its weekly performance from negative territory to a modest +0.08%. As per the latest available data, DOGE is currently trading at $0.06885.
Regarding DOGE’s daily chart, a symmetrical triangle pattern has recently materialized, suggesting a potential breakout in the upcoming days. If this breakout occurs on the upside, DOGE could aim for the resistance level at $0.07195, and sustained buying pressure could even push it as high as $0.07885.
Conversely, a negative breakout could prompt DOGE to retest the immediate support level at $0.06450 within the next 24 to 48 hours. Beyond that, sellers might target the next critical level at $0.05835 in the short term.
Traders and investors should exercise caution as the daily Moving Average Convergence Divergence (MACD) indicator is on the verge of triggering a significant bearish signal. At present, the MACD line appears poised to cross below the MACD Signal line, indicating a potential continuation of DOGE’s bearish trend.
Despite these technical indicators, it is crucial to bear in mind that cryptocurrency markets are highly volatile and subject to sudden shifts. Therefore, investors should always conduct thorough research and consider multiple factors before making investment decisions.
While Dogecoin’s performance is closely monitored by crypto enthusiasts, it is important to consider the potential implications for the broader cryptocurrency market. Meme coins, known for their humorous and internet-inspired origins, have been both praised and criticized for their speculative nature.
If Dogecoin manages to break out of its descending triangle and triggers a rally in meme coins, it could spark renewed interest and attention in the crypto space. However, this should be viewed within the context of overall market dynamics, which are influenced by various factors, including regulatory developments, macroeconomic trends, and market sentiment.
