Date: Sunday, December 29, 2024, 12:23 PM GMT

Dogecoin (DOGE), the leading meme coin, is stabilizing after seeing a healthy correction following an impressive rally of over 200% last month. The rally took its price from a low on November 5 to a high on December 9 of $0.48. After a recent 30-day decline of over 21%, $DOGE is back on the rise, trading at $0.3244 today and showing signs of recovery.

Source: Coinmarketcap

Analyst confirms final retest:

According to a multi-year chart shared by @TATrader_Alan, Dogecoin has consistently followed a recurring pattern of “final retests” before breaking out into parabolic highs. These retests occur after long periods of consolidation, characterized by resistance areas that are eventually broken.

Source: @TATrader_Alan (X)

Key observations from the chart include:

Historical Accuracy: Similar “final tests” were observed in 2017 and 2020, each followed by exponential price increases. In both cases, the price consolidated below a major resistance level before breaking out.

Current Retest: The latest retest shows DOGE successfully reclaiming the vital resistance level near $0.32, reversing the pattern seen in previous cycles.

Potential Upside: If this retest follows the same path as the previous ones, Dogecoin could see another parabolic upside, with much higher targets of up to $4.50 according to analysts.

What's next?

The recent correction in DOGE price formed a descending valley pattern, a classic bullish setup. This pattern saw the price drop from a recent high of $0.48 to a low of $0.26. DOGE bounced off the valley support level and today broke the valley resistance level at $0.32, a crucial breakout level. The current trading price of $0.3243 puts DOGE in a good position for further upside potential.

Dogecoin (DOGE) 4H Chart //Coinsprobe

MACD Indicator: The MACD shows an increasing bullish momentum, with the MACD line crossing above the signal line. This is usually a reliable sign of increasing buying pressure.

Key Resistance Levels: The next important price targets for DOGE are $0.41 and $0.48, representing potential upside levels as the breakout gains momentum.

If DOGE can maintain its momentum and break these resistance levels, it could pave the way for another impressive rally, perhaps testing the $0.50 psychological barrier.

Conclusion

Dogecoin’s recent price action and chart patterns point to a promising setup for a major bullish rally. The completion of the “final retest,” as analysts have highlighted, along with the breakout from a descending valley pattern, suggests that DOGE is primed for a potential upside in the coming days. With strong technical indicators, including a bullish MACD crossover and historical patterns supporting this move, Dogecoin could reclaim and possibly surpass its previous highs.

However, as always, market conditions can change quickly, and it is imperative for investors to remain cautious and conduct thorough research before making any trading decisions. As the market watches DOGE’s next move, it seems the meme coin may prove once again why it is a favorite in the crypto space.