The Dogecoin price is currently correcting after two weeks of intense price upticks that saw it reach $0.426 for the first time since its massive 2021 bull run. However, as is normal after such a crazy rally, the Dogecoin price now seems to be undergoing a brief correction as a few holders start taking profits or exiting their positions overall. Notably, the Dogecoin price is down by 8.5% in the past 24 hours and 13% since it reached $0.426.
Interestingly, this correction was called by a crypto analyst on social media platform X. According to crypto analyst Kevin, recent Dogecoin price action has led to the creation of a weird Dogecoin symmetrical triangle pattern, which could either lead to a correction or a continued upside move.
Analyst Says Symmetrical Triangle Favors Price Correction
Dogecoin has begun consolidating, which is quite normal before the continuation of a rally. As crypto analyst Kevin noted using the 1-hour candlestick timeframe, Dogecoin has been consolidating since November 12. This consolidation has been characterized by the creation of lower highs and higher lows, giving rise to a symmetrical triangle pattern.
Considering that it is coming from a bullish move, the symmetrical triangle has the highest chance of breaking to the upside. However, the analyst noted that there’s a higher chance of correction, especially due to the daily Relative Strength Index (RSI) signalling an overbought condition above 90. At the time of his prediction, Dogecoin was trading around $0.39. Since then, its price has declined further, reinforcing the case of a correction.
In the event of continued downward movement, Kevin identified a key support zone between $0.30 and $0.26, which aligns with the golden pocket retracement levels. This range represents a potential 30-40% correction from Dogecoin’s recent top at $0.426. “That’s a 30-40% correction from the local top, which in a bull market is a perfect size correction,” he said.
Keeping in mind the lingering bullish sentiment, Kevin acknowledged in a follow-up post that the Dogecoin price could defy his expectations, and he might be wrong about the consolidation leading to a major correction.
He suggested the possibility that the symmetrical triangle might actually be a bull flag pattern, which is more typically associated with bullish breakouts. If this is the case, the pattern could pave the way for an upward breakout that would drive the Dogecoin price toward a guaranteed target of $0.90.
Current State Of Dogecoin Price
At the time of writing, Dogecoin is trading at $0.37, having decreased by 8.5% in the past 24 hours. Nevertheless, Dogecoin is still on track to finish November with the best monthly gains in over three years. The next few days will be crucial in determining how this plays out; whether the consolidation phase resolves with a sharp correction or a rally to new highs.
Featured image created with Dall.E, chart from Tradingview.com