- Dogecoin moves close to a symmetrical triangle breakout, eyeing $0.057.
- The improving network growth cements DOGE’s bullish narrative.
- Transaction history reveals intense resistance that could hinder expected upswing.
Dogecoin has been in consolidation for over a week now. The sideways trading appeared after a gruesome drop from March highs at $0.0635. Support at $0.0495 played a key role in stopping the declines from stretching further. DOGE is dancing within the confines of a technical pattern likely to elevate it to highs around $0.057.
Dogecoin Nears Symmetrical Triangle Breakout
Dogecoin is doddering at the apex of a symmetrical triangle, printed on the four-hour chart. This pattern forms after an asset has experienced a significant move in price. The triangle is molded by two converging trend lines, where one connects a series of higher lows and the other links descending peaks.
Symmetrical triangles do not have a bearish or bullish bias. They can culminate in breakouts or breakdowns. Note that a breakout occurs when the price lifts above the upper trendline. On the other hand, a breakdown happens when the asset slides under the ascending trendline.
As for Dogecoin, a breakout is likely to occur, leading to a 13.5% liftoff to $0.057. This breakout target is measured from the triangle’s highest to lowest points.
DOGE/USD Four-Hour Chart
The ‘Meme Coin’ is trading at $0.054 at the time of writing. Bulls are battling short-term resistance at $0.055. Cracking through this resistance may help validate the upswing above the triangle. Therefore, DOGE must close the day above $0.055 to add credence to the uptrend.
According to IntoTheBlock’s “Daily Active Addresses” metric, Dogecoin’s gradual uptrend is intact. The model shows the number of new addresses joining the network daily has been growing but at a slow pace. From a 30-day low of approximately 31,300 addresses, the protocol has recorded roughly 49,600 addresses at writing.
As the network growth improves, the level of token inflow and outflow is optimized. The increase also reveals that adoption is gaining traction. In other words, positive network growth is a bullish signal for DOGE’s price and the project’s mainstream adoption.
Dogecoin New Addresses Chart: IntoTheBlock
Looking at the Other Side of the Picture
It is worth noting that the In/Out of the Money Around Price (IOMAP) model by IntoTheBlock shows that Dogecoin’s uptrend will meet immense opposition toward $0.06. The model brings to light the hurdle running from $0.057 to $0.058. Here, nearly 120,000 previously purchased around 11.2 billion DOGE. It would be difficult for the bulls to push through this zone, sabotaging or delaying the upswing.
Dogecoin IOMAP model by IntoTheBlock
On the downside, DOGE sits on areas with relatively weak support. This means that massive losses may be triggered if the immediate technical anchor at $0.052 is broken.
The model also directs attention to the zone between $0.051 and $0.049. Here, roughly 56,000 addresses previously scooped up 2.3 billion DOGE. The bearish leg may extend to $0.04 if the price fails to find refuge in this support zone.