Could Dogecoin Price Surge 450% After Wedge Breakout?

Dogecoin (DOGE), the meme-driven cryptocurrency beloved by many, is exhibiting promising signs of a significant price move. Analysts and traders are observing its current state, which hints at historical patterns presenting once more. Specifically, Dogecoin has formed its third falling wedge pattern, a structure known for preceding substantial upward strokes in price when broken. Traditionally, falling wedge breakouts signal robust bullish momentum, and Dogecoin's chart patterns have supported this assertion in previous cycles. Expert trader, known online as Trader Tardigrade, has released weekly charts showcasing Dogecoin's current third falling wedge. Previous breakouts from similar structures resulted in notable rallies—one reaching approximately 202% and another extending up to nearly 370%. These past successes suggest the current formation may culminate in a surge potentially as hefty as 450%. Currently, Dogecoin is priced at about $0.14, residing well within the constraints of the wedge. Significant descending resistance along with compressive rising support is squeezing the price into a narrow corridor, amplifying the expectations of an explosive outcome once the wedge is broken.

Double Bottom Formation and Accumulation Patterns

Not just the long-term wedges, but also short-term formations indicate possible bullish outcomes for Dogecoin. Lower time frame charts present a doubling bottom formation at the support zone of $0.136, where the price has shown favorable buyer interest twice. This action has led to a rounded reversal base, reinforced by rising green candles and declining seller pressure. Such fundamentals suggest strengthening momentum that reinforces encouraging signs for potential upward moves. Around $0.148 to $0.150 lies the neckline resistance of this pattern, a zone which, once crossed with volume, could trigger a notable upward shift in price movement. The repetition of accumulation cycles echoes historical price expansions, which saw rallies upwards of 190% to nearly 480%. An analysis by Bitcoinsensus reflects this cyclical nature, suggesting that similar trends could lead Dogecoin price toward the $0.70 mark. The consolidation phase between $0.139 and $0.145 aligns with previous patterns, indicating the likelihood of a breakout should these cyclical trends continue.

Signs of a Reversal Setup in Dogecoin

A crucial aspect contributing to the discussion of a bullish move is the presence of a completed liquidity sweep which was jotted down in BitGuru’s daily analysis. This sweep brought the DOGE price momentarily below $0.13, eliminating weak hands and simultaneously hitting many stop-losses. However, the swift recovery seen thereafter marks a potential base-building phase, indicative of an incoming price rise. From the aspect of technical indicators, the weekly Relative Strength Index (RSI) previously flagged oversold territories but has now started shifting upwards, comparable to past instances when DOGE was on the brink of a rally. This RSI reset, combined with improving intraday trends showing higher lows, corroborates bullish sentiment. The breakout probability becomes significantly higher if Dogecoin revisits and breaks above $0.15—a threshold that was previously a strong supply area. This breakthrough could catalyze momentum-driven buying, placing sustained upward pressure on DOGE's price action. Overall, these developments constitute a framework that speaks well to traders betting on a return to DOGE's explosive potential.

Source: The post 'Can Dogecoin Price Explode 450% as Falling Wedge Breakout Signals Return?'