Dogecoin bulls need to wait for the price to move above $1 before going long
A contracting triangle contains the price action
$0.6 support must hold
Dogecoin followed the bullish trend seen in the cryptocurrency market in 2023 and gained more than 50% before the recent correction started. But the spike in the first part of the year is nothing compared to the movement seen in late November.
In fact, since then, Dogecoin has been unable to break the lower highs series, which puts a big question mark on its ability to rally. But bulls should be patient and wait for the market to move above $0.1, as it looks like a pivotal level for Dogecoin.
DOGEUSD chart by TradingView
A daily close above $0.1 opens the gates for more upside
A contracting triangle formed on the 4h timeframe, and Dogecoin’s price action has been contained since late November. Therefore, the safest way to trade this market is to wait for the price action to break above or below, the triangle’s trendlines.
Judging by the market’s resilience to drop below the $0.06 support level, it appears that the triangle will end up with a bullish breakout.
However, bulls may just want to wait until the triangle’s upper edge is broken before going long. On such a move, bulls should target resistance seen at $0.16, with a stop-loss order at $0.8. This way, the risk-reward ratio makes sense from a money management perspective.