A cryptocurrency analyst pointed out that Dogecoin has recently been stuck in the Descending Triangle, and the decompression could potentially trigger a significant move.

Dogecoin continues to collapse in a descending triangle

In the modern one post on X, analyst Ali Martinez shared the Descending Triangle pattern that has recently been forming on the 4-hour Dogecoin price chart. A descending triangle is a triangular technical analysis (TA) consolidation channel that forms when an asset moves between two converging trend lines towards negative net worth.

The key feature of this pattern is that the lower trendline is parallel to the time axis. So, as the price moves through the channel, the upper end of its range gradually decreases.

Similar to other consolidation patterns on TA, the upper trendline of the descending triangle is also considered a source of resistance and the lower one is considered support. Breaking any of these limits could mean a continuation of the trend in that direction.

The descending triangle is just one type of triangle that exists in TA. Another popular pattern is the Ascending Triangle, which involves the opposite case: a flat upper barrier and a rising support line.

Here is a chart shared by Martinez that shows the Descending Triangle where Dogecoin has been stuck in the 4-hour time frame recently:

As you can see in the chart above, Dogecoin has been gradually moving downwards in a descending triangle shape over the past few months. The asset has repeatedly tested both trend lines, but has so far failed to find a breakout.

The analyst initially shared this pattern last week, but between then and now, little has changed for DOGE as it remains firmly trapped in the channel. In a recent post, Martinez noted that this triangle could pave the way for memecoin to move by around 29%.

It is often assumed that triangle breakouts lead to moves with a degree equal to the height of the triangle; DOGE’s Descending Triangle included a 29% swing between the high and low, hence the analyst call for a breakout.

It is currently unclear when Dogecoin could exit the channel, but as you can see from the chart, the asset is slowly approaching the apex of the triangle. Consolidation is tight in this region, so a breakout may become more likely. It now remains to be seen in which direction the coin will leave the channel and whether there will be any lasting movement.

DOGA Price

At the time of writing, Dogecoin is hovering around $0.093, up over 2% in the last 24 hours.