Crypto analyst Trader Tardigrade has highlighted an interesting development in the price movement of Dogecoin as it begins to trade in a range. According to the crypto analyst’s technical analysis, Dogecoin is currently in a manipulation phase. Interestingly, he noted that the king of meme coins has been following the Power of Three (PO3) pattern over the past few weeks, hinting at an impending bullish wave.
Dogecoin aligns with Power Of 3 model
The Power Of 3 pattern is an interesting price pattern in technical analysis that always ends with a strong upward move. This model describes three critical phases; Accumulation, manipulation and distribution, which collectively define market cycles.
In the case of Dogecoin, the leading meme cryptocurrency has remained on a downward trend trajectory since the second week of December, with notable corrections leading to a break below the threshold of $0.30. As Trader Tardigrade pointed out, this drop is part of the Power Of 3 pattern, which means it’s very important for a price spike from here.
According to Trader Tardigrade, using the daily candlestick time chart, Dogecoin’s accumulation phase lasted from early November to mid-December after a crazy surge that lasted from October to November. During this accumulation period, Dogecoin price consolidated in a tight range, signaling moderate activity but significant buying interest, even as some holders took profits.
#Dogecoin seems to align with the Power of Three (PO3) model 🔥$Doge has recently moved from a long consolidation in the accumulation phase, which extends from early November to mid-December, to the manipulation phase. Following this, the distribution phase should… pic.twitter.com/qvEYCQbUly
– Tardigrade Trader (@TATrader_Alan) December 24, 2024
However, recent price action over the past two weeks has seen Dogecoin price enter the manipulation phase. This phase was characterized by a sharp decline due to increased volatility, particularly on December 20, which saw the price of Dogecoin briefly drop to $0.267. However, this phase could be a prelude to the final and most explosive stage of the model (the distribution phase).
Distribution Phase to Send Dogecoin Price to New All-Time Highs
The Power of 3 pattern culminates in the distribution phase, 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 price of $0.7316. In particular, the analyst highlighted a price movement that would see Dogecoin reach up to $0.95 in the distribution phase.
At the time of writing, Dogecoin is trading at $0.332, having rallied around 3.5% in the past 24 hours. Reaching the $0.95 target would result in an increase of approximately 186% from the current price. Regarding the calendar, the analyst pointed to the first two weeks of 2025 as a probable period for this upward movement to materialize.
This the prediction aligns with broader market expectations for Dogecoin, with many investors and analysts anticipate a breakout above $1. Although the $0.95 target stops just short of this milestone, it serves as a compelling indication of continued bullish sentiment surrounding Dogecoin.
Featured image created with Dall.E, chart from Tradingview.com