The price of Dogecoin seems to be in the early stages of a budding momentum, with particularly strong recent trends over the past 48 hours. In particular, Dogecoin rebounded and retested the $0.34 price level in the past 24 hours.
Notably, the technical analysis of Dogecoin's price movement suggests that this meme coin may now be preparing to reach the $1 mark or even higher.
Dogecoin price reaffirms the expanded wedge breakout.
According to technical analysis, Dogecoin's recent price movement has completed a retest of the expanded wedge pattern.
The expanded wedge pattern is typically a bullish formation, accompanied by a significant price increase.
This pattern has consistently rising highs and a relatively straight bottom. In the case of Dogecoin, the expanded wedge pattern has been gradually forming over the years since May 2022.
Interestingly, Dogecoin's performance in the last few months of 2024 has broken through the expanded wedge pattern.
This breakout occurred after a significant rebound in October and November, briefly breaking $0.48 in December. However, this breakout was short-lived as Dogecoin entered a corrective path in the last two weeks of December.
As shown in the Dogecoin weekly chart below, this adjustment allowed it to retest the upper end of the expanded wedge. Nevertheless, Dogecoin bulls successfully prevented further price declines, and the meme coin completed its retest in the past 24 hours.
This development could lay the foundation for a significant rebound, with Dogecoin potentially reaching a new high of up to $2.6 in the near future.
The descending triangle breakout suggests a short-term rise.
In addition to the long-term expanded wedge setup, trader Tardigrade also identified a descending triangle breakout in Dogecoin's short-term price charts. This pattern is also reflected in the daily candlestick timeframe, indicating a bullish outlook for Dogecoin.
Dogecoin has broken out of the descending triangle at the bottom. This chart pattern could lead to explosive growth for Dogecoin thereafter. The short-term price target for Dogecoin in this scenario is $0.56.
The convergence of these bullish chart patterns enhances the bullish outlook for Dogecoin's price movement.
These breakouts collectively provide compelling reasons for Dogecoin to regain its upward momentum and ultimately break through the $1 mark in the coming weeks.
At the time of writing, Dogecoin has seen increased activity over the past few days. Its current trading price is $0.34, up 5.5% over the past seven days.
