Dogecoin at Crossroads: Will Bulls Drive Price to $1.40 or Bears Pull It to $0.17?

• A symmetrical triangle pattern signals a potential Dogecoin breakdown if $0.20760 fails, with downside targets as low as $0.16239.
  
• A weekly chart suggests Dogecoin could rally 740%, reaching between $1.00 and $1.40, if historical patterns repeat.
  
• Dogecoin’s market cap recovery to over $32.5 billion indicates growing investor interest and short-term strength returning to the asset.
  

Dogecoin is hovering near a crucial price zone as traders brace for a decisive move. With bullish and bearish setups unfolding, the next breakout could define DOGE’s direction ahead of the anticipated Fed rate decision.

Bearish Setup Forms as Triangle Pattern Tightens

Crypto analyst Ali Martinez recently shared a 4-hour Dogecoin chart showing a symmetrical triangle pattern. The price is now near $0.21012, just under the 0.618 Fibonacci retracement level at $0.22170—an area that’s proven tough to break.

The triangle pattern is nearing its final stages, and if DOGE loses the $0.20760 support, sellers could take control. The chart shows potential targets at $0.19, $0.177, and the 1.272 Fibonacci extension at $0.17166. A deeper drop to $0.16239, the 1.414 extension, is also on the table.

The pattern includes lower highs and flat lows, hinting at increased selling pressure. Volume is also tapering off, which often leads to a breakout. A firm move below $0.20760 could confirm the bearish case, while reclaiming $0.22 might shift momentum.

Bullish Case Builds on Historical Price Rhythm

While short-term signals suggest caution, a longer-term view from Bitcoinsensus Via X paints a more optimistic picture. Their weekly chart shows DOGE moving within a broad, rising channel that began in late 2022.

The current position mirrors earlier patterns that led to large rallies. Past cycles saw gains of 290% and 440%, and this chart projects a 740% rise—possibly lifting DOGE to between $1.00 and $1.40.

The price remains above the lower trendline, suggesting the structure is intact. Analysts also view prices below $0.21 as attractive accumulation zones. With a possible Fed rate cut expected soon, the setup may draw fresh attention to DOGE.

Market Cap Stability May Signal Strength Ahead

Dogecoin’s market cap moved between $30.5 billion and $34.0 billion between August 28 and September 3,reflecting active trading and shifting investor sentiment throughout the week. After dipping on September 1, the market cap rebounded above $32.5 billion. If it holds or climbs toward $33 billion, it could support a more confident bullish push in the coming sessions.