Dogecoin ($DOGE ), the leading memecoin, is gaining momentum after a healthy correction that followed its remarkable 200% rally last month. This surge took the price from a low of $0.12 on November 5 to a high of $0.48 on December 9. After a 30-day dip of over 21%, DOGE is now recovering, trading at $0.3244 today and signaling renewed bullish potential.
Final Retest Identified by Analyst
@TATrader_Alan, a prominent crypto analyst, has shared a multi-year chart on X, highlighting a recurring "Final Retest" pattern seen throughout Dogecoin's history. These retests have consistently preceded significant rallies, and DOGE appears to be following the same trajectory.
Key insights from the analysis include:
Historical Patterns: Similar "Final Retests" occurred in 2017 and 2020. In both cases, the price consolidated below key resistance levels before breaking out into exponential rallies.
Current Retest: DOGE has successfully reclaimed the critical resistance level near $0.32, mimicking past cycles.
Potential Growth: If the current pattern holds, Dogecoin could be on track for another parabolic rally, with analyst targets suggesting a potential price of $4.50.
Technical Analysis: What Lies Ahead for DOGE?
Dogecoin's recent correction formed a classic falling wedge pattern—a bullish technical setup. After dropping from its high of $0.48 to a low of $0.26, DOGE bounced off the wedge's support and has now broken through its resistance at $0.32, a crucial breakout level. Currently trading at $0.3243, the token appears well-positioned for further upside.
Additional indicators include:
MACD Momentum: The MACD line has crossed above the signal line, indicating building bullish momentum and strengthening buying pressure.
Key Resistance Levels: The next targets for DOGE are $0.41 and $0.48, which are critical levels to watch as the breakout gains momentum. Sustained growth above these levels could lead to a test of the $0.50 psychological barrier.
What’s Next?
If Dogecoin maintains its upward momentum and successfully clears the outlined resistance levels, it could trigger another significant rally, potentially challenging its all-time highs. The completion of the "Final Retest" and breakout from the falling wedge pattern point to a strong technical setup for further gains.
Conclusion
Dogecoin’s price action and chart patterns suggest it is primed for a bullish move. The "Final Retest" observed by analysts, coupled with key technical indicators like the MACD crossover, underscores the token's potential for another impressive rally. However, investors should remain cautious and conduct thorough research before making decisions, as the crypto market remains volatile and unpredictable.
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Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before investing in cryptocurrencies.
