After previously forming a descending wedge pattern, if a breakout occurs, Dogecoin (DOGE) could achieve a massive 300% increase.
According to cryptocurrency chart analyst Trader Tardigrade, DOGE has tripled after breaking out of an earlier descending wedge pattern.
If DOGE mimics its past behavior, the top meme coin could soar to the $0.72 region, currently priced at $0.24.
Dogecoin has shown a clear upward trend after forming a diamond bottom reversal pattern.
Trader Tardigrade previously pointed out that "the daily chart of Dogecoin seems to be forming a 'diamond bottom' reversal pattern, suggesting that $Doge may shift from a recent downtrend to an uptrend."
The diamond bottom reversal pattern typically forms after a prolonged downtrend. It represents a shift in market psychology from selling pressure to buying interest.
As of the time of writing, Dogecoin's monthly increase has reached 53.1%, with a trading price of $0.2492, indicating that the eighth-largest cryptocurrency is showing bullish momentum. Meanwhile, DOGE has been experiencing significant institutional inflows and slow retail outflows, driving its upward trend.
For example, cryptocurrency whales have recently been purchasing 100 million DOGE tokens each week, indicating increased market activity.
The cryptocurrency market is staging an epic carnival.
The Musk effect reappears: As the "number one spokesperson" for Dogecoin, Musk's every mention of DOGE can trigger market tremors. This time, his tweet has been interpreted as a "significant positive forecast," with rumors suggesting that Tesla may accept Dogecoin as payment.
Market sentiment reversal: After months of stagnation, the cryptocurrency market saw a broad rise today, with Dogecoin becoming the preferred target for speculative funds due to its high liquidity and community consensus.
Short sellers have been massacred: Data shows that over $500 million in DOGE short positions were liquidated today, making it one of the "most brutal short squeezes in history."
Future predictions: Is $1 just the starting point? Or is it the eve of a bubble burst?
Optimists believe that the rise of Dogecoin has just begun, and if Musk continues to promote it, a $1 target is just around the corner; meanwhile, cautious individuals warn that DOGE lacks practical application support and could face a sharp correction after its surge.
