Dogecoin shows bullish pressure as the diamond pattern forms above the broken trend line
Dogecoin forms narrow consolidation ranges and a diamond continuation pattern, as the price is now building pressure for a breakout above $0.1880.
Published on: May 5, 2025, at 02:08 AM
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By Francis E
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Dogecoin approaches a bullish breakout as a cryptocurrency analyst predicts a significant price rise
Dogecoin is trading between $0.1580 and $0.1870, with repeated failures to break out, showing strong liquidity traps on both sides.
Trader Tardigrade expects the diamond to continue forming above the $0.1700 level, indicating a possible breakout towards $0.2300 soon.
Price pressure continues near $0.1820 as volume fades, increasing the likelihood of a directional expansion in the coming sessions.
Dogecoin continues its stabilization within recurring price structures, revealing trap zones and potential breakout formations. The recent movements of the asset have unfolded on short and daily time frames, allowing traders multiple patterns to monitor.
Ranges and reversals form the market movement over four hours
Technical analyst Trader Tardigrade described Dogecoin's recent behavior as "a series of breakdowns and false breakouts within narrow price ranges." His analysis of the four-hour chart revealed two consolidation zones, between $0.1580 and $0.1720, and $0.1770 and $0.1870, characterized by repeated liquidity sweeps at both support and resistance.
In the first range, the price briefly exceeded $0.1730 before sharply reversing and returning to its range. Any subsequent breakout below $0.1580 also failed, as the Dogecoin quickly rebounded and rose. The same pattern repeated in the second range, where the movement reversed above $0.1870, followed by declines near $0.1720, and then also rebounded.
He indicated, clarifying the recurring structure, that "these traps remove weak positions and reset liquidity." The price of Dogecoin remains within the second range, hovering near $0.1820, with tightening momentum and declining trading volume. Both zones show price rejection at their highest levels, exacerbating the pressure below key breakout thresholds.
With volatility compressing, the trap setups and their reversals pave the way for a directional resolution. Tardigrade concluded that the pattern's behavior "often leads to a strong movement once both sides are tested."
Diamond continuation pattern forms above the trend line
In his analysis of the higher time frame, trader Tardigrade pointed out the continuity of the diamond pattern on the daily chart above a broken trend line. This pattern is developing between $0.1700 and $0.1880, sitting above the descending resistance level that was broken on April 23 after Dogecoin's price exceeded $0.1580.
"This is a typical consolidation after a trend line breakout," he wrote while sketching the symmetrical range of the structure. The diamond spans about nine sessions, with the price rejecting both limits while maintaining the integrity of the structure. This setup follows a bottoming movement from $0.1340, placing Dogecoin within a potential bullish continuation.
As trading volume declines, the candles remain within the pattern, reflecting a temporary pause rather than a reversal. Tardigrade advised to "wait for the breakout," indicating an expected movement towards $0.2200-$0.2300. With the previous resistance level turning into support, the pattern remains intact until the lower bound is broken. The model's position and structure reinforce a shift in the underlying trend, as the Dogecoin indicator awaits confirmation above $0.1880.
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