DOGE is tightly compressed in a symmetrical triangle: a 40% surge or free fall?

Dogecoin (DOGE), the memecoin symbol of the crypto market, is in a crucial consolidation phase as the price moves within a symmetrical triangle pattern. According to technical analysis, this is one of the patterns that often appears before strong breakouts, and this time, analyst Ali Martinez predicts that the volatility range could reach up to 40%.

Dogecoin and the Symmetrical Triangle Model: Tension Building Up Before the Explosion

In a post on X, Ali Martinez pointed out that the price of Dogecoin on the 12-hour chart is being "compressed" within a symmetrical triangle pattern. The characteristics of this pattern are:

• Prices are fluctuating within an increasingly narrow range, squeezed between a downward sloping resistance line and an upward sloping support line.
• When these two lines converge, the oscillation space almost disappears, forcing the price to break out of the pattern.

Unlike other triangle patterns (, bullish triangles and bearish triangles ), symmetrical triangles are neutral, meaning they do not favor either an upward or downward direction. Therefore, the outcome completely depends on market momentum at the time of the breakout.

Martinez also emphasized that Dogecoin has been in this pattern for over a month. Recently, the price attempted to break above but failed, leading to a pullback to the middle of the triangle. This indicates that selling pressure is still present, but at the same time, buying pressure has not disappeared, as the price has not breached support.

One principle in technical analysis is: the closer it gets to the peak of the triangle, the higher the probability of a breakout. On the 12-hour chart, DOGE has now advanced quite far into the convergence zone, meaning the crypto market may soon witness a significant volatility.

According to estimates, the range of this fluctuation could reach about 40%. If the price breaks upwards, DOGE could aim for significantly higher levels, opening up a new bullish phase. Conversely, if the price breaks downwards, selling pressure could push this memecoin deeper, creating a panic sentiment in the short term.

It is worth mentioning that currently, DOGE is equidistant from both resistance and support, making it extremely difficult to predict the next direction. The market seems to be waiting for a sufficiently strong "catalyst" — which could come from macro news, Bitcoin volatility, or funds from large investors.

Lesson Warning from Worldcoin (WLD)

To demonstrate the "unpredictability" of the symmetrical triangle model, Martinez also presented another example with Worldcoin (WLD). Similar to Dogecoin, WLD once formed a symmetrical triangle pattern. However, instead of breaking upward, this coin broke down below the support line, causing the price to drop sharply and move towards the 0.5 USD range.

The lesson learned here is: a symmetrical triangle does not always signal a price increase. It only indicates that the market is in a state of compression, and when the pressure surpasses the threshold, a new trend will form - either an increase or a decrease can occur.

With the current situation, Dogecoin is in a "fragile balance":

• If it breaks above the resistance zone, DOGE could become the focal point of speculative capital flows, as the memecoin market often reacts very strongly to bullish signals.
• If it breaks down, retail investors may panic sell, causing prices to drop deeper than expected.

The important point is that this model is approaching the final stage, which means a strong volatility is almost certain, it's just a matter of time and direction.

Overall, Dogecoin is in a tense "compression" phase while trading within a symmetrical triangle on the 12-hour chart. According to Ali Martinez, this memecoin could soon witness a major volatility with a range of 40%.

However, since the model does not lean towards any particular trend, both a strong surge and a sudden drop are possible. Investors should be prepared with a risk management strategy, monitor key support-resistance levels, and wait for clear confirmation signals before taking action.

In the context of the volatile crypto market, Dogecoin once again faces the opportunity ( or challenge ) to prove whether this memecoin is just a joke, or can truly create unpredictable "waves" for the entire market.

Annie