Dogecoin has significantly declined by 11.8% and 20% in the past 24 hours and 7 days respectively, and may soon retest the support at the $0.30 price level. Despite this decline, the well - known technical analyst Trader Tardigrade on the social media platform X has still noticed the formation of a symmetrical triangle on DOGE's daily candlestick chart. This classic technical pattern usually precedes significant price movements, and a breakout could prompt the resumption of an uptrend.

According to Trader Tardigrade, Dogecoin appears to have been trading within a symmetrical triangle for the past seven days. This started after the price correction of Dogecoin, which reached $0.43 on January 18th.

Based on the daily candlestick chart, since January 20th, the bodies of most candlesticks have been within the range of this triangle. In the first two days of the pattern, there was a temporary breakout above the upper trendline, but the price of Dogecoin quickly retreated back into the pattern. Since then, the price has shown a series of lower daily highs and higher daily lows, indicating weakening selling pressure and a balance between buyers and sellers.

 

The price action has managed to move towards the apex of the triangle, and the trader suggests that a breakout could be in favor of the bulls, pushing the price significantly higher.

If Dogecoin successfully breaks through the upper trendline of the symmetrical triangle, it may signal the resumption of a bullish trend. Trader Tardigrade predicts that this breakout could set a target price of at least $0.45 for Dogecoin.

However, instead of moving upwards, Dogecoin recently broke below the lower trendline of the symmetrical triangle, sending its trajectory downwards to the support level of $0.31. This level has proven to be an important liquidity area within 30 days. In fact, $0.31 has been a reliable support point, and Dogecoin has rebounded from this price three times during its recent decline. The most significant recovery occurred on January 13th, when Dogecoin rebounded from the $0.31 level, eventually reaching a high of $0.4318.

Now, the next step is whether DOGE can repeat this pattern and rebound from $0.31 again. A successful rebound at this key support level would indicate that buyers are stepping in and providing the strength needed for Dogecoin to resume its upward trajectory. If the rebound gains enough momentum, it could re - establish confidence in Dogecoin's bullish prospects and lay the groundwork for another attempt to break the $0.45 target. Until then, $0.31 remains a key level to watch as the meme coin tests the resolve of the buyers.