Emily Walker
Crypto expert Trader Tardigrade has pointed out a notable development in Dogecoin’s price trend, which is currently moving in a specific range. Based on his technical analysis, Dogecoin appears to be undergoing a manipulation phase. Interestingly, he has observed that this popular meme coin has been following the Power of Three (PO3) pattern for several weeks, indicating a potential bullish surge ahead.
Understanding the Power of 3 Pattern
The Power of 3 pattern is a significant technical analysis concept that usually culminates in a substantial upward movement. It comprises three essential stages: Accumulation, Manipulation, and Distribution, which outline the typical market cycles.
For Dogecoin, this leading meme cryptocurrency has followed a downward trend since December’s second week, experiencing notable dips that dropped it below the $0.30 mark. Trader Tardigrade emphasizes that this downturn is a critical part of the Power of 3 pattern, suggesting it sets the stage for a potential price increase.
Examining daily candlestick charts, Trader Tardigrade notes that Dogecoin’s accumulation phase spanned from early November to mid-December, following a remarkable surge from October to November. During this accumulation stage, the price remained stable in a narrow range, indicating reduced activity but strong buying intent, even as some investors took profits.
#Dogecoin is now following the Power of Three (PO3) pattern. It has just transitioned from its Accumulation Phase, which lasted from early November to mid-December, into the Manipulation Phase. The next stage expected is the Distribution Phase… pic.twitter.com/qvEYCQbUly
— Trader Tardigrade (@TATrader_Alan) December 24, 2024
Recent price movements over the last two weeks have shown Dogecoin entering the manipulation phase, marked by a significant drop and heightened volatility, especially around December 20 when it fell briefly to $0.267. However, this phase might be a precursor to the final, more explosive distribution stage of the pattern.
Anticipated Distribution Phase May Propel Dogecoin to New Highs
The culmination of the Power of 3 pattern leads to the distribution phase, characterized by strong upward momentum. Trader Tardigrade forecasts that this phase could push Dogecoin’s price to exceed its previous all-time high of $0.7316. He suggests that the price could potentially soar to as high as $0.95 during this distribution phase.
Currently, Dogecoin is valued at $0.332, having experienced a 3.5% bounce in the last 24 hours. A rise to the $0.95 target would represent an approximate 186% increase from its current price level. According to the analyst’s predictions, this bullish movement is likely to occur within the first two weeks of 2025.
This forecast aligns with broader market expectations, as many traders and analysts are optimistic about Dogecoin breaking the $1 barrier. While the $0.95 target is just shy of that milestone, it reflects a continued positive sentiment regarding Dogecoin’s future.