Dogecoin Price Aligns With Power of 3 Pattern, Here's What to Expect Next
Cryptocurrency analyst Tardegrad has highlighted an interesting development in Dogecoin’s price action as it starts trading within a range. According to the analyst’s technical analysis, Dogecoin is currently in a manipulation phase. Interestingly, he noted that the king of meme coins has been following a Power of 3 (PO3) pattern over the past few weeks, indicating an imminent bullish wave.
Dogecoin is in line with the power of 3 pattern.
The Force 3 pattern is an interesting price pattern in technical analysis that always ends with a strong upward move. This pattern identifies three crucial phases; accumulation, manipulation, and distribution, which collectively define market cycles.
In the case of Dogecoin, the leading meme cryptocurrency has been in a downtrend since the second week of December, with notable corrections leading to a break below the $0.30 threshold. As Tardegrad points out, this decline is part of a 3-force pattern, meaning that a price rally from here is very likely.
According to Targard, Dogecoin’s accumulation phase lasted from early November to mid-December after a wild rally that lasted from October to November. During this accumulation period, Dogecoin’s price consolidated within a narrow range, indicating limited activity but strong buying interest even as some holders took profits.
However, the recent price action over the past two weeks has seen Dogecoin enter a manipulation phase. This phase was marked by a sharp downward movement of increased volatility, most notably on December 20, which briefly took Dogecoin down to $0.267. However, this phase may be a prelude to the final and most explosive phase of the pattern (the distribution phase).
Distribution Phase Will Send Dogecoin Price to New All-Time Highs
The Force 3 pattern culminates in a distribution phase, which is characterized by strong bullish momentum. In the case of Dogecoin, trader Tardegrad predicted that this phase will push its price to new all-time highs above its current level of $0.7316. Specifically, the analyst plotted a price action that would see Dogecoin reach $0.95 in the distribution phase.
At the time of writing, Dogecoin is trading at $0.332, having gained around 3.5% in the past 24 hours. Reaching the $0.95 target would translate into a gain of around 186% from the current price. In terms of timeline, the analyst pinpointed the first two weeks of 2025 as the likely period for this upward move.
This prediction is in line with the broader market outlook for Dogecoin, with many investors and analysts anticipating a break above $1. While the $0.95 target stands at the threshold of this milestone, it is an interesting indicator of continued bullish sentiment on Dogecoin.
