#JoblessClaimsLowestApril Well-known cryptanalyst Cobra Vanguard has highlighted the bullish structure forming on the weekly Dogecoin chart.
His recent analysis suggests that the meme coin may be preparing for a rally towards the $1 mark, a psychological level that $DOGE
has been following for many years. The latest analysis is based on Dogecoin's recent uptrend, during which it rose to $0.44 before facing a pullback.
The rounded bottom of Dogecoin and the AB=CD pattern
Cobra Vanguard has shared a weekly chart showing the rounded bottom that has formed for Dogecoin since the beginning of 2021. This is a bullish structure that often indicates an impending price breakout after prolonged consolidation.
For reference, a rounded bottom indicates a growing accumulation of the market, where bearish momentum is fading, setting the stage for a bullish revival. On the Cobra Vanguard chart, the Dogecoin price recently broke through the rounded base at $0.35 and is currently at $0.39.
The analyst predicts a harmonic model AB=CD, where the price may rise to $0.68. This represents a Fibonacci projection of 1241% from the base of the model. Moreover, Fibonacci extensions suggest further resistance zones at $0.65 (85.54% of the breakout) and eventually $1.
Interestingly, the volume confirms this bullish forecast. An increase in buyer activity accompanies the breakout, confirming the strong momentum. If this trend continues, the completion of the model could send Dogecoin into uncharted territory, reflecting its rapid growth in early 2021.
Dogecoin's Short-term Prospects
Meanwhile, DOGE's daily chart shows the short-term prospects of the meme coin as it strives towards the $1 level. Dogecoin is currently consolidating at almost $0.39 after its significant rally. Fibonacci retracement levels from the recent low of $0.13 to the local high of $0.44 show support and resistance zones.
The current price is testing the 0.786 Fibonacci retracement level at $0.38, acting as a key short-term resistance. A sustained break above this level could push the price to $0.44 (a recent high).
A push above $0.44 could put Dogecoin face to face with resistance in the upper Bollinger band ($0.4832). A breakout of this level could potentially lead to $0.63, which coincides with a 1.618 Fibonacci extension. The last DOGE resistance below $1 is at the 2.618 Fibonacci level near $0.9484.
However, if a pullback occurs, the correction levels of 0.618 ($0.29) and 0.5 ($0.25) provide strong buying opportunities. The daily Bollinger bands are also narrowing, indicating that a breakout may be imminent. This indicates the indecision of the market, which often precedes a significant price change.