Dogecoin on the Rise: Symmetrical Triangle Forming with Strong Wyckoff Indicators

Dogecoin is approaching a crucial moment as its price movements tighten within a symmetrical triangle, coinciding with a significant Wyckoff setup on a higher timeframe. The emerging pattern of higher lows and a compact formation, combined with developing Wyckoff signals, indicates a growing strength beneath the surface. This raises the possibility that DOGE may be gearing up for its next major price move.

Key Takeaways

Dogecoin's price movements are tightening within a symmetrical triangle, indicating potential strength.
A multi-timeframe (MTF) strategy suggests entering long positions at discounts and short positions at premiums.
The Wyckoff Model 1 range provides actionable trading strategies for Dogecoin.
The daily chart reflects a strengthening market structure for DOGE, despite recent downtrends.
Selling exhaustion may signal a possible upward breakout for Dogecoin in the near future.

Dogecoin

Multi-Timeframe (MTF) Range Strategy: Buying Low and Selling High

Insights from Wyckoff Insider emphasize a multi-timeframe (MTF) approach, where traders focus on entering long positions in extreme discount areas and short positions in extreme premium zones. An MTF range often highlights clear Wyckoff structures at both the highs and lows of the range, providing valuable entry points for traders.

Currently, Dogecoin is establishing an 8-hour Bojan pivot within the extreme discount zone of this MTF range. The critical aspect of trading a Bojan pivot is identifying the Sign of Strength (SOS) that appears on the third candle. Bitcoin demonstrated a similar 8-hour Bojan recently, but navigating it was more complex due to fluctuations on both sides of the range, which complicates trading DOGE as well.

Dogecoin
Source: Chart from Wyckoff Insider on X

On lower timeframes, Dogecoin is also displaying a Wyckoff Model 1 range. Traders look for a Last Point of Support (LPS), Break of Structure (BOS), and internal BOS pattern once the third candle opens and prices pull back. Possible entry points include breaking out on the 3-minute BOS with a stop set below the Model 1 low or entering on the LPS after the internal BOS, placing a stop beneath the LPS itself.

For risk management, Wyckoff Insider recommends keeping risk at 2% for each setup, with a target price (TP1) at the Wyckoff target zone (40%) and a second target (TP2) at the first range supply. The trade should be fully closed upon the appearance of a Sign of Weakness (SOW). This disciplined and structured strategy helps traders navigate DOGE's complex, Wyckoff-driven price actions effectively.

Daily Chart Reveals Strength Amid Downtrend

Trader Tardigrade has pointed out that the daily chart indicates Dogecoin is building a stronger market structure, despite the recent downtrend. This resilience is evident when comparing current price behavior to previous market cycles.

Traditionally, during periods of broader market weakness, DOGE has tended to reinforce its bearish trend by forming lower lows after establishing a new swing low. However, in a notable shift from this pattern, DOGE is currently working to create a higher lows structure within a symmetrical triangle.

This formation is significant, as it suggests that Dogecoin has faced rejection from further downward trading. Such a development implies that selling pressure may be diminishing, preparing the market for a possible upward breakout.

Dogecoin
DOGE trading at $0.14 on the daily chart | Source: DOGEUSDT on Tradingview.com