Dogecoin’s price appears to have flipped bullish as the popular dog-themed meme coin reclaims the $0.17 level that previously capped recent upside attempts. Meanwhile, multiple positive indicators are currently showing that DOGE upside prospects are strengthening, with key resistance levels in sight.
Dual Chart Pattern To Amplify Dogecoin’s Rally
With bullish market sentiment growing, Dogecoin has witnessed a brief bounce. A recent analysis from Trader Tardigrade, a technical analyst and investor, reveals that DOGE’s current structure is strong and a rally could be on the horizon.
DOGE’s chances of making a significant upward move are increasing as two crucial chart patterns emerge, suggesting that the meme-inspired cryptocurrency’s newfound upswing may continue. The first key chart pattern spotted on the 4-hour time frame was a Falling Wedge formation. A falling wedge formation is a chart pattern that usually indicates a possible reversal of a downward trend or a continuation of an upward trend.
Presently, the meme coin has broken out from this key chart setup. Such a move is considered a bullish signal as it suggests that a declining price is beginning to lose momentum and that buyers are starting to enter the market once again.
After breaking out of the falling wedge pattern, the chart shows that DOGE has persistently experienced sideways movements. However, this movement is confined to an Ascending Channel pattern. This bullish technical pattern reflects a robust upward trend in which the price continuously forms higher highs and higher lows.
As upside momentum is subtly building beneath the surface, this double crucial pattern serves as an indication that DOGE’s much-awaited rally might be about to start. Should Dogecoin retest the upper line of the channel, this move could bring the meme coin’s price back to a value of $0.19 in the upcoming days.
DOGE’s Preparing For A Surge To New Highs
After a period of downward trend and bearish pressure, Dogecoin’s short-term outlook seems remarkably bullish. Batman, a blockchain and crypto enthusiast, has outlined a trend on the DOGE’s chart that shows that a move toward a new all-time high is imminent.
The expert highlighted that many investors and traders appear to have neglected the meme coin leader due to its recent waning price action. However, this lack of interest has not stopped Dogecoin from amassing momentum for a potential breakout as it mirrors past cycle trends.
Despite the reduced attention, Batman noted that DOGE is quietly repeating the price action pattern it created in the 2016 cycle. According to the expert, DOGE is gearing up for a massive surge similar to the one seen in 2016 after breaking out of the pattern. Looking at the chart, Batman is confident that the meme coin’s price could rally to the $1 mark and beyond if the pattern precedes a similar upsurge.
Featured image from iStock, chart from Tradingview.com
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