A prominent crypto analyst, Cobra Vanguard, has highlighted a bullish structure forming on the weekly chart of Dogecoin.
Recent sound analysis suggests that the meme coin could be preparing for a rally towards the $1 mark, a psychological level that DOGE has been observing for years. The latest analysis comes on the back of Dogecoin’s recent uptrend, which saw it rise to $0.44 before facing a pullback.
Rounded Bottom of Dogecoin and AB=CD Pattern
Cobra Vanguard shared a weekly chart revealing a rounded bottom pattern it has developed for Dogecoin since early 2021. This is a bullish structure that often indicates an upcoming price breakout following extended consolidation.
For the uninitiated, a rounded bottom indicates increasing market accumulation, where bearish momentum is easing, paving the way for a bullish resurgence. In the Cobra Vanguard map, the Dogecoin Price recently surpassed the rounded base at $0.35 and currently stands at $0.39.
The analyst predicts an AB=CD harmonic pattern, where the price could rally towards $0.68. This represents a Fibonacci projection of 1,241% from the base of the model. Additionally, Fibonacci extensions suggest further resistance zones at $0.65 (85.54% measured from the breakout) and ultimately at $1.
Interestingly, the volume confirms this bullish outlook. Increasing activity on the buyer side accompanies the breakout, confirming strong momentum. If it holds, the completion of the pattern could send Dogecoin into uncharted territory, mirroring its meteoric rise in early 2021.
Dogecoin Short-Term Outlook
Meanwhile, the DOGE daily chart shows the near-term outlook of the meme coin, as it look at the $1 level. Dogecoin is currently consolidating at nearly $0.39 after its significant rally. The Fibonacci retracement levels from the recent low at $0.13 to the local high at $0.44 show areas of support and resistance.
The current price is currently testing the Fibonacci retracement level 0.786 at $0.38, acting as crucial resistance in the short term. A sustained break above this level could propel the price towards $0.44 (the recent high).
Notably, a push above $0.44 could bring Dogecoin face to face with upper Bollinger band resistance ($0.4832). Breaking this level could potentially leads to $0.63, which corresponds to the 1.618 Fibonacci extension. DOGE’s last resistance below $1 is at the Fib level. Level 2.618 around $0.9484.
However, if a pullback occurs, the 0.618 ($0.29) and 0.5 ($0.25) retracement levels provide strong buying opportunities. Daily Bollinger Bands are also tightening, indicating that a breakout could be imminent. This shows market indecision, which often precedes a massive price movement.
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