Dogecoin Could See A 60% Move If It Breaks Out Of This Range, Says Analyst — But What Determines Its Direction?

A widely followed cryptocurrency analyst on Thursday projected a 60% price move for Dogecoin DOGE/USD once it breaks free from a symmetrical triangle pattern.

What happened: Ali Martinez said the dog-themed cryptocurrency looks "prime" for a 60% move. He highlighted a symmetrical triangle chart formation, characterized by two converging trendlines. It typically indicates a period of consolidation in the market before a potential breakout or breakdown.

"All you need to do is wait for a daily close outside of the $0.16 to $0.22 range to determine the direction of the trend," he added

A cryptocurrency trader operating under the pseudonym BitGuru said DOGE exhibited a "clear downtrend structure," forming lower highs from $0.2547 to $0.2069.

That said, derivatives traders were still highly bullish on the coin. More than 75% of Binance traders with open DOGE positions were long as of this writing, according to Coinglass.

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Meanwhile, the Commodity Channel Index, which measures the difference between the current price and the historical average price of an asset, signaled a "Buy" for DOGE, according to data from TradingView.

The Bull Bear Power indicator, however, flashed "Sell," indicating a balance between buyers and sellers in the market.

The world’s largest memecoin by market capitalization has retreated sharply from its May highs, pressurized by ongoing geopolitical tensions.

Price Action: At the time of writing, DOGE was exchanging hands at $0.1682, down 2.20% in the last 24 hours, according to data from Benzinga Pro.

Photo Courtesy: alfernec on Shutterstock.com

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