Dogecoin's Triangle Support Test: A Roadmap for Recovery and When to Sell

Dogecoin (DOGE) is currently testing a crucial support level within a long-term triangle pattern, an event that could influence its price direction in the near future. A fresh technical analysis outlines potential recovery milestones and suggests an ideal timeframe for profit-taking.

Key Takeaways

Dogecoin is testing the $0.135 support level within a descending triangle pattern.
Continued support at this level is critical for a bullish outlook.
If Dogecoin rebounds, potential recovery targets are $0.155 and $0.190.
Sellers are likely to become active in the $0.47 resistance zone, making it a strategic point for profit-taking.
Carter predicts that by 2026, Dogecoin may recover from its current downturn.

Dogecoin

This article investigates Dogecoin's current price movement within a triangular pattern, examining key support levels and potential recovery points. Analyst Jonathan Carter provides insights on when to consider selling to maximize profits based on market behavior.

Dogecoin's Triangle Pattern: A Path to Recovery

In a recent post on X, cryptocurrency analyst Jonathan Carter provided fresh insights into Dogecoin's price movements, suggesting that a potential recovery may soon take place. Currently, Dogecoin is testing a significant support region near $0.135 within a long-established descending triangle pattern. This analysis focuses on a 3-day chart timeframe, where price movements stay above the triangle's lower boundary—a critical battleground for buyers and sellers.

Carter emphasizes that the ongoing support at this level offers an appealing risk-reward ratio for traders. Those buying at this price point are trying to sustain a breakout and avoid a collapse that could jeopardize the overall recovery outlook. Maintaining above the $0.135 support ensures Dogecoin's bullish potential remains vibrant.

The descending triangle depicted in Carter's chart reveals a pattern of lower highs converging on the stable support level at $0.135. Such compression typically precedes a significant price movement once it reacts strongly at this base. Dogecoin's existing setup suggests the market is nearing a pivotal inflection point.

Dogecoin Chart

Currently, volume data at the chart’s bottom hasn't shown strong growth near the support level, indicating muted trading activity. This could mean the market is waiting for strong confirmation before making a substantial upward move.

If Dogecoin successfully bounces back from the $0.135 support level, Carter's analysis indicates several key resistance levels to watch. Initial targets for recovery are around $0.155 and $0.190, areas where notable price reactions have previously occurred. Surpassing these levels may signify a strengthening momentum and signal an end to Dogecoin's downtrend.

DOGE Chart DOGEUSD now trading at $0.13. Chart: TradingView

Further upside potential is projected in the chart at levels of $0.250 and $0.310, aligning with earlier consolidation points. A stronger upward trend might pave the way toward $0.370, leading ultimately to the resistance zone near $0.470.

Understanding the Resistance Zone: When to Sell DOGE

Carter's analysis identifies the $0.47 resistance zone, where selling activity is expected to increase. A rise into this zone could result in heightened selling pressure based on past price actions. Thus, this resistance area becomes a strategic point for profit-taking rather than a point for new investments in Dogecoin.

Overall, Carter's insights suggest that Dogecoin's price is currently at a decisive technical juncture that could dictate its next major movement. As reported by CoinMarketCap, the price of the meme coin has plummeted by over 22% year-to-date. Nevertheless, Carter maintains a positive outlook on DOGE’s recovery journey, forecasting that it may recover from its downturn by 2026.

Featured image from Unsplash, chart from TradingView