Emily Walker
Dogecoin’s price appears to be gaining momentum, as recent trends indicate a rebound with a retest near the $0.34 mark. This analysis suggests that the meme coin is potentially on the verge of making a significant move, possibly targeting the $1 milestone and beyond.
Retest Indicates Potential Breakout for Dogecoin
Recent technical evaluations reveal that Dogecoin has successfully retested a broadening wedge pattern. This observation was highlighted by crypto analyst Trader Tardigrade on the social media platform X.
The broadening wedge is generally perceived as a bullish signal, often leading to significant price increases. This pattern typically features rising highs and a steady bottom, and for Dogecoin, it has been forming since May 2022.
In late 2024, Dogecoin broke through this broadening wedge during a rally in October and November, which saw it briefly surpass $0.48 in December. However, this surge was followed by a downward correction in the latter part of the month.
As illustrated in the weekly candlestick chart of Dogecoin, this correction enabled it to retest the upper limit of the broadening wedge. Despite facing potential declines, Dogecoin bulls successfully stabilized the price, completing a retest in recent hours. Trader Tardigrade anticipates this could lead to a significant upward movement, with predictions suggesting a target as high as $2.6 in the future.
Descending Triangle Breakout Suggests Short-Term Gains
Alongside the long-term broadening wedge setup, Trader Tardigrade identified a descending triangle breakout within Dogecoin’s short-term price movements. This pattern, observed on the daily candlestick chart, also signals a bullish outlook for Dogecoin.
Tardigrade stated, “Dogecoin has broken out of the Descending Triangle at the bottom. This chart pattern could lead to an explosive surge for $DOGE afterwards.” He estimates that the immediate price target for Dogecoin in this scenario is around $0.56.
The combination of these bullish patterns strengthens the optimistic forecasts regarding Dogecoin’s price direction. These breakouts collectively portray a robust case for Dogecoin to revitalize its rally and aim for a breakout above the $1 threshold in the coming weeks. Currently, Dogecoin is trading at $0.34, reflecting a 5.5% increase over the past week.