In a post published on Friday via Platform X (formerly Twitter), Musk revealed that Dogecoin is currently exhibiting significant bullish characteristics, reflecting a positive market sentiment, suggesting that its upward trend may continue and has the potential to break historical highs. Musk attached a chart showing that Dogecoin has successfully crossed a descending trendline that has acted as a key resistance level for nearly two years. This breakout indicates that Dogecoin may soon enter a new phase with greater upward potential, showcasing remarkable potential for both short-term and long-term goals.
Dogecoin has successfully broken through the descending trendline, a move that releases a key technical signal. The descending trendline, as an important tool for identifying asset downtrends, often signifies that the asset has been in a long-term downward channel. Under the influence of this trendline, Dogecoin's price has experienced sustained declines and prolonged consolidation, particularly pronounced when facing key resistance levels. However, breaking through this trendline is seen as a strong bullish signal, indicating that the prolonged price stagnation may soon come to an end, with the market potentially entering a new upward phase. Musk's analysis further indicates that if Dogecoin can stabilize above the breakout point, it will lay the foundation for confirming a strong upward trend and drive it towards the next target price. Analysts predict that Dogecoin's price recovery is likely to help it break the first target price of $0.653, resulting in an approximate 75% increase. If Dogecoin can maintain its strong momentum, its price could even rise further to $1.25, achieving an astonishing increase of up to 234%. Currently, Dogecoin's trading price is $0.38, and despite a highly volatile market environment, it still demonstrates strong growth momentum. According to CoinMarketCap data, Dogecoin achieved an impressive 21% increase in the past week, highlighting its strong position in the market. In the past 24 hours, Dogecoin's price has surged by 14%, clearly indicating that despite the market's uncertainties, Dogecoin can still maintain its bullish trend.
The technical pattern towards $1
As the price of Dogecoin continues to rise, several market authorities have expressed optimistic predictions for this highly regarded meme coin. Renowned cryptocurrency analyst Trader Tardigrade predicts that Dogecoin is likely to successfully cross the important threshold of $1 before January 2025. The analyst revealed through a chart that Dogecoin has recently entered a distribution phase known as the 'Three-Phase Power (PO3) model.' This model segments market trends into accumulation, manipulation, and distribution phases, indicating that Dogecoin's liquidity and market behavior are undergoing profound changes.
From a technical analysis perspective, Dogecoin is in a critical bullish phase. Its successful breakout from the descending trendline not only indicates that prices may rise further but also clarifies the short-term target price at $0.653, with a long-term outlook potentially reaching a high of $1.25. Meanwhile, as more analysts join the optimistic camp regarding Dogecoin's future, market sentiment is becoming increasingly fervent. If Dogecoin can continue its current upward trend, it is highly likely to usher in a new round of price leaps.
During the distribution phase of this technical pattern, trader Tardigrade believes that Dogecoin has the potential to rise to $1. He is very confident in this prediction and points out that, given the current market value, a 163% increase to $1 is a very reasonable target.
