Dogecoin Head And Shoulders Pattern Suggests Surge To $0.23 With $1.65 Billion At Risk

After several days of indecisive movement, Dogecoin appears to be approaching a technical turning point. The cryptocurrency is currently trading near $0.17, with a slight 1.4% increase in the past 24 hours.

Technical analysis of the Dogecoin price chart shows that the meme coin is about to complete a classic head and shoulders pattern that would send it above $0.22 again. This comes as derivatives data shows that a break could trigger liquidations close to 1% of the $1.65 billion open interest in Dogecoin futures.

Head-And-Shoulders Formation Signals Break To Key Price Zone

According to an interesting technical analysis of the Dogecoin’s price chart, the meme coin is forming a classic inverse head and shoulders pattern on the daily timeframe. This pattern is composed of a well-defined left shoulder in early March, a deep head formed by early April lows, and a developing right shoulder that appears to be stabilizing towards the neckline as of early May.

The chart also shows the potential of an AB=CD harmonic pattern that aligns with Fibonacci extension levels projected from the $0.131 low on April 6. The measured move is a CD playout that will see Dogecoin rise toward the 0.618 to 0.786 retracement levels, corresponding to price targets in the $0.22 to $0.23 range. If this pattern plays out in sync with the head and shoulders structure, it would imply a 35% rally from the current price level.