Key Breakout Signals Bullish Momentum
Dogecoin (DOGE) has seen a surge in price after breaking out of a descending triangle pattern on its daily chart. DOGE could reach a target of $0.265, a previous swing high, following the breakout. This upward movement is supported by a strong candle closing above the resistance line of the triangle.
According to Trader Tardigrade, the breakout signals a shift in the trend from a downtrend to an uptrend. He noted that the breakout above the triangle’s resistance is a clear sign of a potential bullish reversal. He further explains that the price has been consolidating in the range of $0.183 to $0.205 before the breakout occurred.
According to the analyst, holding above the breakout zone is crucial for confirming the upward trend. If the price maintains support above $0.205, the path to $0.265 becomes more likely. This price target represents a previous swing high and would confirm the continuation of the bullish trend. The chart pattern, along with the price action, suggests that DOGE is in a favorable position for continued upward momentum.
Third Bull Wave Is Approaching
However, while Dogecoin has experienced short-term volatility, some analysts believe that DOGE is set for a third major bull wave. Crypto analyst EtherNasyonaL noted that the long-term downtrend in DOGE has been broken, and key support levels have been retested.
As the price of DOGE is around $0.207, it is consolidating within the lower range of a multi-year ascending channel. The analyst noted that the real expansion phase hasn’t arrived yet, but DOGE is positioning itself for a larger breakout similar to previous bull runs in 2017 and 2021.
Dogecoin Recent Price Drop and Market Activity
Despite the positive technical outlook, DOGE experienced a sharp price drop in mid-October, falling from around $0.27 to below $0.18. This sudden decline coincided with a drop in open interest (OI)-weighted funding rates, pointing to a shift in trader sentiment and possibly a large-scale exit from long positions.
As of press time Dogecoin, DOGE was trading at $0.2029 with a 24-hour trading volume of over $2.15 billion. While the coin is up by 0.45% in the past 24 hours, the market remains volatile. Traders are closely watching whether DOGE can hold above recent breakout levels or face further corrections.