Dogecoin may be preparing for another explosive price surge. Upon closer inspection of its long-term price chart, we see a pattern that has repeated multiple times since 2014. Each time this structure completes, DOGE continues to deliver significant growth, and with the latest breakout, it seems that it is happening again.
The chart highlights three distinct phases in Dogecoin's price behavior, showing how each price surge begins and develops. Currently, every sign points to the start of the final and most exciting phase.
DOGE Price and the Strength Model of 3
In the post, technical analyst Trader Tardigrade illustrated a recurring setup in Dogecoin's chart. This setup seems to identify three phases that the price of DOGE follows before each major price surge.
Phase 1 is marked by long accumulation phases. This is where Dogecoin trades sideways or gradually trends downward, often staying below a declining resistance line. These phases can last for many months or even years, with lower highs and little hype surrounding the meme coin.
Phase 2 will take place next. In this phase, DOGE begins to show signs of life. It breaks out of the downtrend and ultimately flips the horizontal resistance into support. This phase does not explode immediately, but it is a crucial shift that lays the groundwork for what comes next.
Phase 3 is the phase that everyone is waiting for. It is when Dogecoin enters full expansion mode. As the price surpasses both diagonal and horizontal barriers, momentum will begin. Previous phase 3 moments have led to rapid and strong surges in the price of DOGE.
Dogecoin's price may be entering phase 3 again.
Currently, the chart shows that Dogecoin has completed phase 2. It has broken out of a long-term downtrend and surpassed the horizontal resistance near $0.20 to $0.25. This is exactly how previous price surges began.
If this model continues to hold, Dogecoin may be entering a new phase 3, similar to the explosive phase that propelled it in previous market cycles. The blue trajectory drawn on the chart indicates that DOGE may be heading towards a new all-time high. That's why the phrase 'Let's take $Doge to phase 3' is booming; it's not just a rallying cry but also a technical signal.
Dogecoin has always been a meme coin that surprises people when they least expect it. With historical patterns repeating and phase 3 likely occurring again, the next move could be significant. Whether you are a long-time holder or just watching from the sidelines, closely monitoring what happens next could be very worthwhile.