Dogecoin Breaks Out of Ascending Triangle Pattern: Is a 16% Decline Coming?

In a new post on X, analyst Ali Martinez discussed the Ascending Triangle pattern for Dogecoin. The "Ascending Triangle" refers to a technical analysis formation (TA) that occurs when the price of an asset consolidates within a triangle zone. The term 'Ascending' in the name of the pattern comes from the fact that this consolidation occurs in a net upward direction. There are two trend lines in this pattern: one level is parallel to the time axis, tracking consecutive highs, and one level has a positive slope, connecting consecutive higher lows. Like any other consolidation pattern in TA, the upper level of the triangle is likely to be a source of resistance in the near future, while the lower level is a source of support. Breaking any of these boundaries could signal a continuation of the trend in that direction. Ascending triangle is not the only type of triangle pattern in TA, two other popular types include Descending triangle and Symmetrical triangle. The first of these is simply the opposite of the Ascending triangle: it forms when the price accumulates in a downward direction instead. Later, the Symmetrical Triangle is an intermediate form between the Ascending and Descending versions, with both of its trendlines having equal and opposite slopes. This means that when an asset is in this pattern, it converges at a midpoint. Recently, the price of Dogecoin in 1 hour seems to be following an ascending triangle pattern. This is the chart shared by Martinez, showing this pattern for the memecoin:

As can be seen in the chart above, the hourly price of Dogecoin has recently tested the lower line of this ascending triangle, but it seems that this coin has not succeeded in seeking support there as it has slipped straight through. From the chart, it is clear that the memecoin is not far from the triangle top when this breakout occurs. The consolidation becomes narrower as an asset reaches the end of the pattern, therefore the breakout is more likely to happen. As mentioned earlier, a breakout could signify a potential continuation of the trend in the direction of the breakout. Therefore, in this case, DOGE has just witnessed a bearish signal. Typically, the length of a move that occurs from a breakout of an ascending triangle has the same length as the height of the triangle itself. Based on this, the analyst notes that a price fluctuation of 16% may occur for this coin as a result of the pattern.