Dogecoin has had a dramatic year. Starting just a year ago, DOGEUSD broke above the cent mark and embarked on a meme-fueled lunar mission towards $1.
It never quite got there and has been on a downward trend ever since. The downtrend has also since headed down a dangerous path, putting the altcoin at risk of another deadly fall. Here’s what could be in store for Dogecoin in the days to come.
Crypto House Training: Good DOGE, Bad Behaviors
There are two sides to every coin, and even a good dog can misbehave sometimes. Dogecoin was the cryptocurrency star last year, surging from less than a penny to nearly $1. It even managed to rank among the top five cryptocurrencies by market capitalization. It also caused a whirlwind of imitators.
Fans of the popular puppy-based coin range from Snoop Dogg to the Dogefather himself, Elon Musk. These celebrities and the masses of the general public piloted the Dogecoin rocket to success. Robinhood investors rejoiced; Memecorners have gone viral on TikTok.
Related Reading | 2021 Memecoin Mania Recap: Dogecoin, Shiba Inu, and More
The ride itself has been pretty bumpy lately due to the increasingly risky macro environment. However, a possible chart pattern might suggest it’s time to abandon ship and return your DOGE to the pound (or dollar).
Is this a descending triangle in Dogecoin? | Source: DOGEUSD on TradingView.com
The Dangerous Descending Triangle In Dogecoin
Dogecoin shows a possible descending triangle chart pattern, shown above. For comparison, the primary phase of the Bitcoin bear market is shown side-by-side with DOGEUSD. A similar sized drop would bring Dogecoin down to around five to ten cents per coin or less.
Descending triangles have a downtrend to break below support, but that doesn’t necessarily mean certain loss for DOGE.
Related Reading | SpaceX Dogecoin-funded DOGE-1 mission set to launch in Q1 2022
In comparison, Bitcoin fell another 50% to its eventual bear market bottom. After the triangle’s final collapse, the trough was reached and the cycle began again.
While things could get worse for Dogecoin investors – especially those who bought near the top – it also might not be very long until the market reverses if the lower range can be defended.
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Featured image from iStockPhoto, Charts from TradingView.com
