Since its high of $0.48 this year, Dogecoin (DOGE) has experienced a long-term downtrend, but recent market signs indicate that this meme coin may be on the verge of a significant turnaround.
Descending wedge pattern suggests bullish trend
Dogecoin is currently forming a descending wedge pattern, which has historically been viewed as a bullish signal. Over the past two years, Dogecoin has exhibited similar patterns three times, each accompanied by significant price increases. The latest formed wedge is larger, suggesting that the breakout may be stronger.
If history repeats itself, the price of Dogecoin is expected to break above $0.95.
At the same time, it is observed that Dogecoin has broken the downtrend line in a shorter time frame, showing a subtle shift in momentum. Although the market has not fully confirmed a bullish trend, early signs suggest that the price may be moving towards the local high of $0.20.
Key support rebound and 58% upside potential
Dogecoin has recently rebounded from the key support level of $0.14-$0.15, with the current price stabilizing around $0.165, indicating that the long-term downtrend may be nearing its end. The daily chart shows bullish reversal patterns in market data, suggesting that buyers are gradually entering the market and the market momentum is shifting.
If Dogecoin can decisively break through the resistance around $0.17, the price could soar to $0.26, representing an increase of about 58.19% from the current level. This target price aligns with the peak when Dogecoin surged strongly in May, after which the price retreated upon encountering resistance at that level.
The Dogecoin forecast is based on a clear rebound pattern in the chart, indicating that the price could rise by about $0.0955 before the end of July. However, the realization of this prediction highly depends on whether Dogecoin can maintain momentum above $0.16 and break through the $0.17 resistance level. If it fails to break through, the price may face continued downward pressure, and bullish signals may become invalid.
Market Outlook and Risk Warning
Despite ongoing market volatility, Dogecoin's recent performance has attracted widespread attention and bullish sentiment. Technical indicators and historical patterns suggest that Dogecoin may be preparing for the next significant upward move. However, investors should proceed with caution and closely monitor the breakout situation at the $0.16 support level and $0.17 resistance level.
If it can break through the key resistance level, achieving a 58% increase in the short term is not out of reach. Investors should continuously track market dynamics, combining technical analysis with market sentiment, to cautiously seize trading opportunities.
