After months of downward adjustment, Dogecoin (DOGE) has recently achieved a critical breakthrough in technical patterns, significantly improving market sentiment.
DOGE may have completed its bottoming phase and is expected to start a mid-term upward trend.
Technical pattern breakout: Long-term downward channel has been broken.
DOGE has successfully broken through the long-term downward channel on the three-day candlestick chart.
Since the end of 2023, DOGE has been in a typical descending wedge structure, which ultimately prompted a short-term rebound last year, with prices approaching the key resistance of $0.45.
Subsequently, DOGE entered a parallel downward channel that lasted for several months.
This price breakout at the upper channel signifies a structural shift in the tug-of-war between bulls and bears.
The current relative strength index (RSI) of DOGE is nearing 75, indicating strong buying momentum, although there is also a potential risk of technical overbought conditions.
Resistance and support levels: Pay attention to $0.287 and $0.445.
Based on the current price structure, the recent key resistance levels are around $0.287, $0.340, and the previous high of $0.445.
The important support below is at $0.092, which is expected to serve as a technical barrier to prevent deep price corrections.
The breakout of DOGE has structural significance, opening up short-term upward space while limiting adjustment space, leading investors to have higher expectations for future market conditions.
Wyckoff analysis: Has the trend reversal begun?
According to classic Wyckoff market cycle theory, DOGE's multi-year price trend can be divided into four phases: accumulation, uptrend, distribution, and correction.
DOGE has remained within the accumulation range for the past two years, with market trading activity mainly characterized by sideways fluctuations.
Recent trends show that it has officially broken out of the consolidation phase and entered an upward channel.
On the weekly chart, DOGE's RSI indicator has risen above its exponential moving average, with the latest value at 53.97, showing early signs of momentum recovery.
The upward target may be adjusted to $0.60.
The current breakout of the RSI is likely to serve as a leading signal for the expansion of the bullish trend.
If the subsequent trading volume and market attention continue to increase, DOGE may challenge the mid-term resistance of $0.34.
If this resistance is successfully broken, there will be potential for further challenges to the $0.60 region, significantly increasing the likelihood of entering the distribution area.