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An analyst explained that if Doge is to avoid a 30% price drop, it must remain above this level.

Doge is currently trading within a symmetric triangle

In a new article on X platform, analyst Ali Martinez shared a chart showing the current trend of Doge from a technical analysis (TA) perspective. The following chart shows the 1-day price movement of Doge.

From the chart, it can be seen that the Doge price may have been fluctuating within a triangular channel in recent months. This channel is not an ordinary triangle, but a special type called a "symmetric triangle".

A symmetric triangle forms when the asset price consolidates between two trend lines with roughly equal and opposite slopes. The upper line tracks the lower highs of the price, while the lower line tracks the higher lows.

As the asset moves within this channel, its fluctuation range narrows over time until it converges at the apex. Typically, when consolidation tightens, volatility is more likely to occur, so as the price approaches the triangle's apex, the likelihood of a breakout increases.

A symmetric triangle breakout may indicate that the trend will continue in the direction of the breakout. This means that breaking above the formation could signal a bullish trend, while breaking below could signal a bearish trend.

As shown in the image, Doge's 1-day price has recently approached the triangle's end, which could be a sign of an imminent breakout. Currently, the meme coin is retesting the lower line, so it will be interesting to observe whether this level holds or ultimately breaks.

Unlike the other two common triangle channel types in technical analysis - ascending triangle and descending triangle - a symmetric triangle is typically considered to have an equal probability of breaking in either direction. The reason is simple: the consolidation in this formation is completely lateral. In contrast, ascending and descending triangles slope upward and downward, respectively, which may affect the breakout direction.

Therefore, even though Doge is currently retesting the lower line, there is still a high possibility of a rebound and breakout above the upper line. Nevertheless, if a bearish breakout occurs, Doge's situation could be particularly concerning, as there is another important resistance level nearby.

The level discussed here is around $0.168, corresponding to the 0.786 Fibonacci retracement level. Fibonacci retracement levels are lines defined using ratios from the famous Fibonacci sequence. "Doge $DOGE must stay above $0.168 to avoid a 30% price drop!" the analyst warned.

DOGE Price

At the time of writing, Doge was trading at around $0.177, down over 4% last week.