In recent days, the Dogecoin market has shown signs of a potential bullish trend.
Over the last 48 hours, this meme-inspired cryptocurrency has bounced back, successfully testing the $0.34 mark within just one day.
Technical indicators suggest that Dogecoin could be gearing up for a notable surge, with aspirations to reach the $1 milestone, and perhaps beyond.
Dogecoin’s Chart Patterns Point to a Promising Breakout
Recent analysis has brought to light that Dogecoin has undergone a retest of a broadening wedge pattern.
Crypto analyst Trader Tardigrade shared this observation on social media platform X, highlighting its significance.
Typically regarded as a bullish sign, the broadening wedge pattern consists of a series of ascending peaks flanked by a relatively stable lower boundary.
In Dogecoin’s case, this formation has been in the works since May 2022, extending over the years.
Toward the end of December 2024, Dogecoin broke through the upper boundary of this wedge, following a surge during October and November that briefly pushed its value above $0.48.
Unfortunately, this upward movement couldn’t be sustained, leading to a corrective phase as the year came to a close.
A look at Dogecoin’s weekly candlestick chart shows that this correction provided the necessary conditions for another retest of the broadening wedge’s upper edge.
Fortunately for bulls, they’ve managed to prevent further declines, and recent tests have bolstered the positive sentiment.
Trader Tardigrade believes that these developments could pave the way for an impressive rally, with price goals potentially reaching as high as $2.6 in the near future.
Short-Term Patterns Indicate Near-Term Upside Potential
In addition to the broader wedge analysis, Trader Tardigrade has also identified a breakout from a descending triangle pattern on Dogecoin’s shorter-term chart.
This pattern, visible on the daily candlestick timeframe, reinforces a bullish outlook for the cryptocurrency.
According to the analyst, Dogecoin’s breakout from this descending triangle could trigger an explosive increase in the price of $DOGE.
He has projected a short-term price target of $0.56 for Dogecoin.
The alignment of these bullish patterns creates a compelling case for Dogecoin’s price movement.
Together, these breakouts suggest that Dogecoin may soon regain its upward momentum, with sights set on surpassing the $1 mark in the weeks ahead.
Currently, Dogecoin is experiencing a significant uptick in trading activity, sitting at $0.34, which reflects a notable increase of 5.5% over the past week.
Source: Bitcoinist
