Dogecoin Drops by 4.68%, Testing the $0.25 Support Zone

With the price trapped within a triangle pattern, is there a breakout opportunity for DOGE to hit $0.30?

As top cryptocurrencies witness a pullback, the meme coin market capitalization drops by 4.5% to hit $67.4 billion. Among the top meme coins, Dogecoin is down by 4.68%, putting the $0.25 psychological support at risk.

As the chances of Bitcoin revisiting its $90,000 support increase, the highly volatile meme coins are on the verge of taking a major dip. Will this downfall crash Dogecoin prices under $0.20? Let’s find out.

Dogecoin Price Trend Trapped in a Triangle

On the 4-hour chart, Dogecoin’s price action shows a long-established bearish trend. This bearish trend has resulted in a resistance trendline.

With the recent failure to break above this trendline, DOGE has retested the crucial demand zone. The price recently found support at $0.245.

Currently, Dogecoin is trading at $0.2520, with a minor price rejection near the support zone. The price action is forming a descending triangle pattern, with the resistance trendline and lower support zone.

The recent price rejection suggests that DOGE may be preparing for a bullish reversal to retest the overhead trendline. Supporting this potential rebound, the daily RSI shows a slight uptick near the oversold boundary.

Within the triangle, Dogecoin has previously staged multiple bullish reversals near the support zone, increasing the chances of a price comeback.

Will Dogecoin Bounce Back From $0.25?

Crypto analyst Ali Martinez supports the idea of a DOGE rebound. According to his recent tweet, the price action on the 4-hour chart signals a potential bullish turnaround, with a buy signal flashing on the TD Sequential indicator.

Given this bullish outlook, if Dogecoin breaks above the overhead trendline, a triangle breakout rally could result in a high-momentum move.

Based on pivot levels, this breakout rally could target the R2 resistance pivot level near the $0.30 psychological mark.

Conversely, a breakdown from the triangle could lead to support levels at the S2 and S3 pivot levels, at $0.22 and $0.19, respectively.