As Dogecoin (DOGE)’s price attempts to hold a crucial support level, an analyst flagged potentially bullish technical setups that could set the stage for a major move in the coming months. Related Reading: BitMine Nears 4.5% Ethereum Supply Share Following $238M Buy Dogecoin Historical Setup Targets Massive Expansion On Wednesday, Dogecoin continued its sideways trajectory between the $0.100-$0.105 local range. The cryptocurrency has been trading within this area for the past four days, after recovering from its one-month low of $0.097 recorded on Saturday. Amid this performance, market observer Trader Tardigrade shared a bullish outlook for the cryptocurrency, analyzing DOGE’s chart on multiple timeframes. He pointed out a “textbook” falling wedge setup on the daily timeframe, which has been forming since early May. The analyst asserted that this pattern is “one of the most reliable bullish reversal patterns,” with the breakouts “almost always lead[ing] to explosive upside.” Dogecoin has been compressing inside this pattern for a couple of weeks, and it’s currently sitting near its apex, while also retesting the formation’s upper boundary. Based on this, the analyst suggested that DOGE is “coiled and ready” for a breakout and potential rally to at least the May highs. Trader Tardigrade also shared the memecoin’s monthly chart, affirming that “a massive surge is coming.” He asserted that Dogecoin appears to be repeating a setup that has previously led to explosive performances. According to the chart, the cryptocurrency is forming a new solid base structure, suggesting that a breakout and rally toward new highs could begin in the coming months. Notably, this structure previously formed ahead of the 2017 and 2021 all-time high (ATH) rallies. As the new multi-year base develops, the analyst stated that DOGE is in “the best accumulation period, adding that “every single time DOGE entered an accumulation zone, it consolidated sideways before exploding into a parabolic rally.” He asserted that this pattern has appeared in 2015-2017, 2019-2020, 2023-2024, and “always leads to an explosion.” DOGE’s Short-Term Fate On The Line In an X post, market watcher Ali Martinez affirmed that Dogecoin “looks ready for a deeper price correction.” As he noted, the cryptocurrency has been trading between $0.088 and $0.115 over the past three months, forming a parallel channel. During the April-May market rally, the leading memecoin was able to climb from the channel’s lower half toward its upper boundary, briefly breaking above this crucial resistance in mid-May before retracing. Following the latest rejection, the cryptocurrency dropped to the channel’s mid-range around $0.102, falling below this level during last week’s pullback. This area aligns with the 50-day Simple Moving Average (SMA), which has served as a key support during the recent market recovery. Related Reading: Bitcoin At A Crossroads: Two Key Levels Will Define BTC’s Next Major Move, Analyst Says Therefore, the analyst highlighted the importance of this level, asserting that if it holds, investors could expect a rebound toward the top of the channel. On the contrary, he warned that if Dogecoin falls below this level, a retest of the channel’s lower boundary would be likely. As of this writing, DOGE is trading at $0.101, a 2.4% decline in the weekly timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
As Dogecoin (DOGE) consolidates below a key area, some analysts suggest that the market’s recent bullish momentum and whale accumulation could push the memecoin’s price above a crucial resistan level soon. Related Reading: Crypto Community Slams LayerZero: More Verifiers Won’t Stop The Next $290M Hack Dogecoin Big Price Move Faces Strong Resistance On Tuesday, Dogecoin continued to move sideways between the $0.093-$0.096 price range after failing to break above a crucial resistance level. Amid last week’s market pump, the leading memecoin broke out of the $0.096 barrier for the first time in two weeks, briefly touching the $0.10-$0.102 resistance on Friday. Market analyst Ali Martinez suggested that DOGE is preparing for a big price move, fueled by bullish momentum and whale accumulation. Notably, the memecoin recently saw one of its highest transaction volumes of the month and one of its highest volume spikes Year-to-Date (YTD), with over $800 million transacted on April 16. In addition, large holders have accumulated over $330 million in Dogecoin over the past week, signaling key demand and confidence in the largest memecoin by market capitalization. Nonetheless, Martinez also analyzed DOGE’s technical structure, noting that cryptocurrency has been consolidating within a horizontal channel since the late-January, early-February market crash. Per the chart, the channel’s mid-range mark, around the $0.10 level, has been a strong resistance barrier over the past three months, with Dogecoin failing to reclaim it despite multiple attempts. To the analyst, only a sustained close above $0.10 could push the memecoin toward the local range highs and open the door to a retest of the upper resistance at $0.12, a level untested since mid-February. DOGE’s Macro Chart Eyes Parabolic Run In a series of X posts, Market observer Trader Tardigrade stated that Dogecoin is “showing strong signs” that its downtrend is losing momentum, pointing out that selling pressure appears to be fading. As he explained, DOGE has recently flashed Bullish Divergence two times, with the indicators refusing to go down despite the price continuing to print lower lows. “That’s a sign the selling force is fading and a shift from downtrend to uptrend could be around the corner,” the trader said. He also shared a macro outlook, affirming that Dogecoin’s launchpad, the setup before a massive surge, is “in place.” According to the chart, this setup formed between 2016 and 2017 and led to a massive rally toward its 2018 all-time high (ATH) of $0.175. “A breakout move toward the moon looks next. Momentum is building,” Trader Tardigrade suggested, adding that “a surge in volume could ignite the next leg higher.” Related Reading: A Stark XRP Price Call: Why One Analyst Says It Could Be Under $1 By 2031 Analyst Bitcoinsensus also shared a macro cycle outlook, stating that Dogecoin continues to trade within a large multi-cycle structure. The market watcher affirmed that the cryptocurrency’s current setup resembles DOGE’s previous macro consolidations. The chart shows that after retracing from previous highs, the cryptocurrency recorded a long consolidation, followed by a parabolic run to new highs, with these breakouts leading to 60x and 215x gains. “The broader formation keeps Cycle 3 in focus, while the market watches to see whether this phase develops like the earlier ones,” Bitcoinsensus stated. Featured Image from Unsplash.com, Chart from TradingView.com