Key Insights
- Dogecoin price is forming a double bottom on the 4H chart, a classic bullish reversal pattern.
- A breakout above the neckline could confirm a bullish trend with potential for a price rally.
- On the monthly chart, Dogecoin is inside an ascending broadening wedge, indicating long-term bullish potential.
Dogecoin (DOGE) price is currently showing patterns that could indicate a big move. Recent changes in DOGE price have been analyzed by technical analysts over both brief and long periods.
Notably, a Double bottom pattern formation is visible on the 4-hour chart, and this usually signals a potential change from a falling trend. At the same time, longer-term patterns in monthly data are supporting the idea that Dogecoin price could rise.
A double bottom develops when prices are trending downward for some time and may suggest the trend is about to change. Dogecoin price chart is in the form of a letter “W,” with the two drops happening at nearly the same low level and showing strong support.
Longer timeframes also suggest that DOGE price might be following the same cycles seen in past cycles, which backs the bullish thesis.
Could Dogecoin Price Hit New Highs Soon?
Dogecoin price double bottom on the 4-hour chart indicates a classic bullish reversal pattern. This structure shows two lows with a peak in between, pointing to potential exhaustion of selling pressure. In the recent setup shared by a market analyst, the pattern is clearly defined, with both bottoms occurring at similar price levels.
A horizontal resistance, known as the neckline, has also been identified. If Dogecoin price breaks above this level, it could signal the beginning of a new upward trend.
A breakout causes buying activity to go up if the increase is also supported by trading volume. Many traders try to figure out the Dogecoin price target by the depth of the pattern and then marking it above the neckline. If confirmed, the present layout might give DOGE price a new direction following a long period of market calm.
DOGE Monthly Price Action
An ascending broadening wedge is forming on the monthly chart for the top meme coin. The trend shows that the highs and lows continue to rise as the lines diverge, which points to growing price fluctuations in the future.
Analysts regard the wedge as part of a longer trend that started many years earlier. Dogecoin price wedge pattern has developed over a series of consolidation phases and is now showing an upward trajectory.
The same chart also shows that past breakouts have occurred after triangular consolidation patterns. This was the case during the 2014–2017 and 2020–2021 periods. Each time, a symmetrical triangle formed, followed by a breakout and Dogecoin price increase.
Similarly, the current wedge includes a triangular pattern formed between 2022 and 2023, which has already broken to the upside. A continued rise inside this wedge could suggest that Dogecoin price is following a recurring technical sequence.
Additionally, analysts have pointed out that the top meme coin has previously moved through stages of consolidation followed by parabolic rallies. If the current market trend continues to align with previous cycles, Dogecoin price could be entering another rally phase.
In earlier cycles, the breakouts led to multi-month DOGE price increases and reached new all-time highs. The rising channel currently forming on the monthly timeframe supports the idea of ongoing upward momentum, especially if volume increases in the coming weeks.
DOGE Technical Breakout
In Trader Alan’s view, focus should be given to the neckline resistance shown in the 4-hour chart. A move over this point would confirm the double bottom and could start a strong buying trend.
A lot of times, traders place entry orders a little higher than this resistance, expecting an increase in DOGE price once it clears the level. A failure or halting of the breakout might bring another test of recent lows before any upward movement.
The upper edge of the ascending wedge appears as an additional important level on the large chart. If the meme coin price goes past the upper trendline, it could attract more traders who expect the price to break out higher.
At the time of writing, Dogecoin (DOGE) price is $0.19, which is an increase of 0.21% over the last 24 hours. While there were fewer trades today, the market cap is at $28.93 billion which indicates some positive trend.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only. And they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
