The price of Dogecoin is in the midst of a correction following two weeks of significant price increases that allowed it to hit $0.426 for the first time since its remarkable bull run in 2021. As is typical after such a substantial surge, the Dogecoin price appears to be undergoing a brief correction as some holders begin to take profits or exit their positions. Notably, Dogecoin’s price has fallen by 8.5% in the last 24 hours and 13% since reaching $0.426.
Interestingly, a crypto analyst on the social media platform X predicted this correction. Analyst Kevin observed that the recent Dogecoin price movements formed a peculiar symmetrical triangle pattern, which could result in either a price correction or continued upward movement.
Analyst Suggests Symmetrical Triangle Points to Price Correction
Dogecoin has entered a consolidation phase, which is a typical occurrence before a rally resumes. As noted by crypto analyst Kevin on the 1-hour candlestick chart, Dogecoin has been consolidating since November 12. This consolidation phase has featured lower highs and higher lows, resulting in the formation of a symmetrical triangle pattern.
Given its bullish origins, the symmetrical triangle often indicates a higher probability of breaking to the upside. However, the analyst pointed out that there is a greater likelihood of a correction, particularly because the daily Relative Strength Index (RSI) indicates an overbought condition above 90. At the time of his analysis, Dogecoin was trading around $0.39, and since then, its price has seen further declines, bolstering the correction narrative.
If downward momentum persists, Kevin highlighted a critical support zone between $0.30 and $0.26, which corresponds with golden pocket retracement levels. This range signifies a potential 30-40% correction from Dogecoin’s recent peak at $0.426. “That’s a 30-40% correction from the local top, which in a bull market is a perfect size correction,” he stated.
Taking into account the prevailing bullish sentiment, Kevin acknowledged in a follow-up comment that the Dogecoin price could contradict his analysis, and he might be mistaken regarding the consolidation leading to a significant correction.
He also proposed that the symmetrical triangle could potentially be a bull flag pattern, which is generally associated with bullish breakouts. If correct, this pattern might support an upward breakout that would raise the Dogecoin price to a target of $0.90.
Current Status of Dogecoin Price
As of this writing, Dogecoin is valued at $0.37, reflecting an 8.5% decrease in the last 24 hours. Nevertheless, Dogecoin remains on track to conclude November with its most substantial monthly gains in over three years. The upcoming days will be vital in determining whether the consolidation phase ends in a sudden correction or alleviates into a rally towards new highs.
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