The price of Dogecoin appears to be in the the early stages of a budding momentum with recent action in the last 48 hours. Notably, a rebound saw Dogecoin retest the $0.34 price level over the past 24 hours. Notably, technical analysis of Dogecoin price action shows that the meme coin could now be gearing up for a remarkable move towards the $1 mark and beyond.
Dogecoin price retest confirms widening wedge breakout
According to technical analysisRecent price action has seen Dogecoin perform another test of an expanding coin pattern. In particular, this interesting phenomenon was noted by crypto analyst Trader Tardigrade, who published his analysis on social media platform X.
The formation of a widening wedge is a generally bullish trend associated with a remarkable rise in price. This formation is associated with increasing tops and a relatively straight bottom. In the case of Dogecoin, the wedge widening trend formed over a period of several years since May 2022.
Interestingly, Dogecoin’s performance in the final months of 2024 saw it surpass the expanding trend. This breakout built on a notable rally in October and November that ultimately culminated in a short break above $0.48 in December. However, this pause was short-lived as Dogecoin was on a correction trajectory over the last two weeks of December.
As shown in the Dogecoin weekly candlestick time chart below, this correction saw it retest the upper end of this widening wedge. Nevertheless, Dogecoin bulls managed to prevent further price drops, the same part having now retested in the last 24 hours. With this in mind, crypto analyst Trader Tardigrade predicts that this development could pave the way for a significant rally, with Dogecoin potentially aiming for new highs of up to $2.6 in the near future.
Descending Triangle Breakout Points to Short-Term Gains
In addition to the long-term widening wedge setup, Trader Tardigrade also identified a breakout of the descending triangle in the short-term price chart of Dogecoin. This trend, which was noted on the daily candlestick time chart, also indicates a bullish trend for Dogecoin.
Tardigrade remarked: “Dogecoin has broken out of the descending triangle at the bottom. This chart pattern could then lead to an explosive rise in $DOGE. According to his analysis, the immediate price target for Dogecoin in this scenario is $0.56.
The convergence of these bullish chart patterns intensifies the bullish outlook for Dogecoin’s price trajectory. Together, these breakouts create a compelling case for Dogecoin to resume its rally and eventually surpass the $1 mark in the coming weeks. At the time of writing, Dogecoin has we saw an increase in activity these last few days. It is currently trading at $0.34 and is up 5.5% over the past seven days.
Featured image created with Dall.E, chart from Tradingview.com