Dogecoin (DOGE) is brewing a rebound, with technical patterns releasing positive signals
Over the past seven days, Dogecoin has accumulated a decline of 6.11%, falling into negative territory overall. However, this pullback is not entirely bearish and instead has released significant bullish signals on the 1-hour candlestick chart.
The recent short-term pullback hit a low of $0.215, showing a corrective downward trend. However, with the recent trading days' lows continuously rising, the price is gradually establishing a more solid support area, forming a technical inverse head and shoulders pattern.
This pattern is generally viewed as a precursor to a trend reversal, indicating that Dogecoin is at a critical point of potential breakout. If the current structure holds, DOGE may soon experience a rapid rebound, challenging higher resistance levels.
Analyst identifies the inverse head and shoulders pattern
Cryptocurrency analyst Klejdi Cuni published a technical outlook on social media platform X, emphasizing the inverse head and shoulders pattern shown on the DOGE/USDT 1-hour candlestick chart. This pattern consists of three distinct troughs, with the middle trough being the deepest, formed on May 25. The right shoulder was formed between May 23 and May 24, which could be interpreted as a short-term bullish reversal.
Analysts state that this particular inverse head and shoulders pattern is smaller in scale, making it more suitable for short-term traders seeking quick volatility. At the time of writing, Dogecoin is still in the process of forming the left shoulder pattern and is currently testing the neckline resistance near $0.228. If it breaks above this neckline with sufficient volume confirmation, it could trigger a rapid increase.
Short-term upward target for Dogecoin
If the bullish inverse head and shoulders pattern develops as expected, analysts anticipate that Dogecoin (DOGE) will first challenge the $0.239 area. This price level briefly acted as support on May 22 and later transformed into resistance during the rebound on the evening of May 23, holding clear technical significance. Once this key resistance is broken, it will open up space for further upward movement.
Once DOGE successfully stabilizes above $0.239, it is expected to challenge the $0.25 mark in the short term. Although this target may seem slightly conservative compared to some medium to long-term forecasts, its symbolic significance cannot be overlooked—DOGE will return to the May highs, confirming the establishment of a phase of rebound trend.
With this technical structure in support, if market sentiment aligns, targets of $0.3 or even higher will no longer be out of reach. After breaking through the key resistance zone, DOGE may re-enter the main upward wave channel, initiating a new cycle of appreciation.
The forecast in the above image shows a stair-step trend, immediately moving up after a breakout, followed by consolidation, ultimately forming a second wave of upward movement, pushing Dogecoin's price to $0.25. However, as with any pattern, confirmation is crucial. If the breakout area cannot be maintained or if it falls below the right shoulder (currently around $0.222), it will weaken the bullish outlook and may lead to a retest of $0.21 for Dogecoin.
At the time of writing, Dogecoin's trading price is $0.2245.
