Dogecoin (DOGE) could be on the verge of an explosive price rally, as recent technical analysis reveals that the popular meme coin may be forming a distinctive Ascending Triangle pattern on its 4-hour chart. This bullish continuation pattern, combined with a rebound from an oversold Relative Strength Index (RSI), suggests that a breakout could occur anytime soon.

Dogecoin Eyes Breakout As Ascending Triangle Forms

An Ascending Triangle is typically seen as a bullish chart pattern, formed by a horizontal resistance line connecting swing highs and a rising trendline connecting lower lows. Interestingly, a crypto analyst, Trader Tardigrade, has identified what appears to be an Ascending Triangle forming on the Dogecoin price chart in the 4-hour timeframe.

Analyzing the analyst’s presented chart, Dogecoin’s price action shows a series of higher lows along an ascending trendline while facing resistance at $0.334 on the horizontal level. This Ascending Triangle formation suggests that buyers may be gaining strength, potentially leading to a breakout to the upside if the meme coin breaches the above resistance level. 

Notably, the lower part of the chart shows that Dogecoin’s RSI indicator recently entered oversold territory, dropping below 30%. The RSI has since rebounded and is gaining significant momentum, with indicators suggesting it may have room to surge towards overbought zones above 70%. This positive shift in momentum indicates a steady increase in buying pressure, supporting the possibility of a Dogecoin price appreciation to new highs.

Based on the chart’s forecast, DOGE’s price could skyrocket toward the range between $0.355 and $0.360 if it successfully breaks above the Ascending Triangle resistance at $0.334. Conversely, a rejection at this resistance level could lead to a retest of the ascending trendline before another breakout attempt.

What’s Next For DOGE?

Despite reports from CoinMarketCap highlighting a price decline of over 6% in the past week, Dogecoin remains resilient, aiming for new highs above the $0.6 mark. A prominent crypto analyst, identified as ‘Coinvo’, has announced to his over 324,000 followers that a new Dogecoin all-time high is imminent. 

The analyst shared a detailed chart illustrating the DOGE price action over a multi-year period on a weekly timeframe. He highlighted two primary resistance levels, which suggests that the meme coin could rise to a new ATH soon.

The first resistance level, $0.015, was broken in early 2021 during the previous bull run, leading to a parabolic price surge in Dogecoin. The second resistance level, $0.6, represents Dogecoin’s all-time high in 2021, which its current price looks to be approaching again. 

DOGE is currently trading at $0.33, having experienced a prolonged downtrend and consolidation between 2022 and 2023. Based on historical trends, the meme coin’s price could be nearing its previous peak, as it follows a similar bullish trajectory as the 2021 bull run.

Featured image from Unsplash, chart from Tradingview.com

The Dogecoin and Shiba Inu prices are rising today, sparking a bullish sentiment among investors. This comes following the massive wave of sell-offs earlier in the week, which led to a significant decline for the foremost meme coins. 

Why The Dogecoin And Shiba Inu Prices Are Rising

CoinMarketCap data shows that the Dogecoin and Shiba Inu prices are rising today, indicating that a bullish reversal may be on the horizon. This price surge has been due to developments on the macro side, with the Federal Reserve leaving interest rates unchanged at the 4.25% to 4.5% range.

The Federal Reserve keeping rates unchanged is typically bearish for the Dogecoin and Shiba Inu prices. However, Fed Chair Jerome Powell’s speech after the FOMC meeting provided some bullish momentum for the crypto market, which is why foremost meme coins are rising today. 

Although Powell said they were in no hurry to cut rates, he added that financial institutions were free to serve crypto clients as long as the risks involved were managed appropriately. This immediately sparked a bullish sentiment among crypto investors seeing as the US Central Bank has indirectly given the nod for crypto adoption among banks. 

Moreover, it comes as Morgan Stanley CEO Ted Pick recently revealed that the bank was working with regulators to explore crypto services. As such, Powell’s speech is timely and provides a bullish momentum for the Dogecoin and Shiba Inu prices and the broader crypto market. 

The Bitcoin price had also surged above $105,000 following Powell’s speech. Bitcoin’s rally has also contributed to rising Dogecoin and Shiba Inu prices. The foremost meme coins are known to share a strong positive price correlation with the flagship crypto and rally when BTC does. Based on the correlation, crypto analyst Kevin Capital stated that the Dogecoin price is waiting for BTC to make its next big move, and when that happens, it will be explosive for the meme coin. 

What Next For DOGE And SHIB

In an X post, crypto analyst Trader Tardigrade provided insights into what could come next for the Dogecoin price. In an X post, he said Dogecoin could witness a similar 6-month rally to one in the 2021 bull run. This came as he identified a comparable DOGE structure that emerged in the previous cycle.

In another X post, he stated that the DOGE/BTC chart suggests a big candle might appear next month for the Dogecoin price. His accompanying chart showed that the foremost meme coin could rally to as high as $2 when this big candle occurs.

Meanwhile, crypto analyst Investing Haven provided a bullish outlook for the Shiba Inu price. He noted that while other meme coins crashed, SHIB has remained strong with less than a 20% correction in January. He added that Shiba Inu has formed a bullish W reversal and is sitting between key Fibonacci levels.

Featured image from Unsplash, chart from Tradingview.com