Dogecoin (DOGE), the leading memecoin, is stabilizing after experiencing a healthy pullback following an impressive rally of over 200% last month. This rally pushed its price from a low of $0.05 on November 5 to a high of $0.48 on December 9. After a decline of over 21% in the last 30 days, DOGE has rebounded, trading at $0.3244 today and showing signs of recovery.
Analyst confirms final retest:
According to the multi-year chart shared by @TATrader_Alan, Dogecoin has consistently followed a repeating pattern of 'Final Retest' before launching into parabolic rallies. These retests occur after prolonged consolidation phases, marked by the breaking of previous resistance zones.
Key observations from the chart include:
Historical accuracy: Similar 'Final Retests' were observed in 2017 and 2020, each followed by exponential price increases. In both cases, prices consolidated below key resistance levels before breaking out.
Current retest: The latest retest indicates that DOGE has successfully regained the important resistance level near $0.32, reflecting a pattern seen in previous cycles.
Bullish potential: If this retest follows a similar trajectory as previous ones, Dogecoin could experience another parabolic rally, with significantly higher targets up to $4.50 according to analysts.
What’s next?
The recent price correction of DOGE has formed a descending wedge pattern, a classic bullish setup. This pattern has seen prices drop from a recent high of $0.48 to a low of $0.26. DOGE has bounced off the wedge support and has today broken through the wedge resistance at $0.32, a key breakout level. The current trading price is $0.3243, positioning DOGE well for the next bullish potential.
MACD indicator: The MACD shows bullish momentum forming, with the MACD line crossing above the signal line. This is often a reliable sign that buying pressure is increasing.
Key resistance level: The next important price target for DOGE is $0.41 and $0.48, indicating potential gains as the breakout momentum is achieved.
If DOGE maintains its growth momentum and surpasses these resistance levels, it could pave the way for another impressive rally, potentially challenging the psychological barrier of $0.50.
Conclusion
Recent price action and chart patterns of Dogecoin indicate a promising setup for a significant bullish rally. The completion of the 'Final Retest,' as analysts emphasize, along with the breakout from the descending wedge pattern, suggests that DOGE is poised for bullish potential in the coming days. With strong technical indicators, including a bullish MACD crossover and historical patterns supporting this move, Dogecoin could regain previous highs and potentially surpass them.
However, as always, market conditions can change rapidly, and it is essential for investors to exercise caution and conduct thorough research before making any trading decisions. As the market watches DOGE's next move, it seems that the memecoin may once again prove why it is favored in the cryptocurrency space.
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