Targeting $0.43
Bitcoinsensus has identified a Dogecoin uptrend opportunity on a key descending trendline after breaking an inverse head and shoulder neckline resistance.
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Dogecoin (DOGE) has experienced volatility over the past week, recording a local high near $0.24 on May 14, 2025. However, after dipping to just above $0.21 by May 17, the memecoin regained momentum to trade at $0.227.
Amid these price fluctuations, analysts have turned their focus to key bullish formations that could shape Dogecoin’s next move. Chart analyses from Bitcoinsensus outline distinct bullish patterns that, if confirmed, could result in a significant upward move.
Inverse Head and Shoulders Pattern
The analysis identifies an Inverse Head and Shoulders pattern forming on Dogecoin’s daily chart. This classic bullish reversal structure typically signals the end of a downtrend.
The pattern began forming in early March 2025, with the left shoulder appearing near the $0.15 level during a reversal from a prior downtrend. The head developed in April with a deeper price drop, while the right shoulder emerged in late April as prices rebounded above $0.165.
The neckline of this pattern, which slopes slightly downward, served as a key resistance zone. The Bitcoinsensus chart showed that DOGE broke through this neckline, marking a potential transition into a new bullish phase.
However, the market watcher also noted that Dogecoin remains constrained under a long-term descending trendline. This trendline, active since late 2024, has repeatedly capped price rallies.
For instance, the memecoin faced a rejection at $0.46 in December 2024, which aligned with this trendline. Further, another rejection emerged at $0.42 in January 2025, also aligning with the trendline. Following the January pullback, DOGE collapsed to the $0.135 range.
Currently, Dogecoin is testing this significant trendline once more. Bitcoinsensus stated that a breakout, retest, and confirmation above this level could validate the bullish reversal pattern.
A successful breakout could push DOGE toward the next major supply zone, located between $0.42 and $0.43. This would represent an 89.43% increase from the current trading level of $0.227.
Potential Continuation of Uptrend
Meanwhile, complementing the Inverse Head and Shoulders setup, a second technical pattern has emerged on the charts. Trader Jake Wujastyk identified a developing bull flag pattern, which generally forms during consolidation phases following a sharp price rally.
This setup consists of two parallel downward-sloping trendlines representing the flag, and a preceding sharp move higher that forms the flagpole.
In this case, the flagpole formed during a strong rally that brought prices close to $0.25. Since then, the price has been consolidating between approximately $0.251 and $0.201, maintaining a controlled pullback within the flag.
Per the chart, this consolidation indicates that DOGE is cooling off while preserving its bullish market structure.
The key signal for this pattern would be a breakout above the flag’s upper boundary. Such a move, especially if accompanied by a spike in trading volume, could suggest a continuation of the previous uptrend.
On-Chain Activity Surges, Supporting Technical Outlook
In addition to chart-based signals, on-chain data has recently shown strong alignment with the bullish technical outlook.
A report from IntoTheBlock highlights a sharp increase in Dogecoin’s Daily Active Addresses (DAA), which includes New Addresses (NA), Active Addresses (AA), and Zero Balance Addresses (ZBA).
These three metrics recorded significant jumps over the past seven days, with New Addresses rising by 102.40%, Active Addresses up 111.32%, and Zero Balance Addresses increasing by 155.32%.
Historically, such surges in user engagement have correlated with price rallies in the DOGE market. The increased activity indicates broader user participation and may suggest strengthening demand as Dogecoin tests crucial technical levels.
DisClamier:
This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect @Lachakari_Crypto opinion. Readers are encouraged to do thorough research before making any investment decisions. @Lachakari_Crypto is not responsible for any financial losses.