Chart Suggests DOGE is About to Breakout

2021-03-04 09:41:38

The Dogecoin price has been in a tight range lately. The DOGE is trading at $0.05 where it has been in the past few sessions. This brings its total market cap to more than $6.50 billion, making it the 15th biggest cryptocurrency in the world.

What happened: The Dogecoin price has experienced low volatility lately. This is partly because, Elon Musk, its biggest promoter has been relatively silent about it in the past few weeks. His latest tweet on the cryptocurrency was on February 24, when he sent the following tweet.

The only other major news about it is that the currency is now being accepted in about 1,800 ATMs in the United States. Still, there is no data about the number of people using it for daily transactions.

Dogecoin price prediction

On the four-hour chart below, we see that the Dogecoin price reached an all-time high of $0.0877 in February. Recently, however, it has been relatively muted as the price has oscillated at the current range.

A closer look shows that it has formed a symmetrical triangle pattern while the overall volume has waned. In technical analysis, unlike an ascending and descending triangle, symmetrical ones are difficult to predict. 

Therefore, in my view, the breakout will happen soon since the triangle is nearing its convergence zone. If it breaks-out higher, the next level to watch is $0.06 and if it breaks out lower, trader should watch $0.04.

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DOGE price chart

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