Dogecoin Price Is Following The Power Of Three Pattern, Here's What To Expect Next
Cryptocurrency analyst Trader Tardigrade has highlighted an interesting development in Dogecoin’s price action as it has started trading within a range. According to the crypto analyst’s technical analysis, Dogecoin is currently in a consolidation phase. Interestingly, he noted that the king of meme coins has been following a Power of Three (PO3) pattern for the past several weeks, indicating an impending bullish wave.
Dogecoin is in line with the power of three pattern.
The Power of Three pattern is an interesting price pattern in technical analysis that always ends with a strong upward movement. This pattern identifies three critical phases; accumulation, manipulation, and distribution, which collectively define market cycles.
In the case of Dogecoin, the leading cryptocurrency has been on a downward trajectory since the second week of December, with notable corrections leading to a break below the $0.30 threshold. As Trader Tardigrade points out, this decline is part of a Power Of 3 pattern, which means it is very important for the price to rise from here.
According to Trader Tardigrade, using the daily candlestick chart, Dogecoin’s accumulation phase lasted from early November to mid-December after a crazy rally that lasted from October to November. During this accumulation period, Dogecoin’s price stabilized within a narrow range, indicating subdued activity but strong buying interest even as some holders took profits.
However, the recent price action over the past two weeks has seen Dogecoin’s price enter a manipulation phase. This phase has been marked by a sharp downward move of increased volatility, most notably on December 20, which saw Dogecoin’s price briefly drop to $0.267. However, this phase could be a precursor to the final and most explosive phase of the pattern (the distribution phase).
Distribution phase to send Dogecoin price to new all-time highs
The Force 3 pattern peaks in a distribution phase, which is characterized by strong bullish momentum. In the case of Dogecoin, trader Tardigrade predicted that this phase would push its price to new all-time highs above its current level of $0.7316. In particular, 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. Hitting the $0.95 target would translate to a gain of around 186% from the current price. In terms of timeline, the analyst pinpoints the first two weeks of 2025 as a likely period for this bullish move to take place.
This prediction is in line with the broader market outlook for Dogecoin, with many investors and analysts anticipating a breakout above $1. While the $0.95 target stops just short of this milestone, it is a compelling indicator of continued bullish sentiment for Dogecoin. #BtcNewHolder #币安Alpha公布第6批项目代币 #بينانس_سكوير_تعاقب #love
