In the past few days of checking the market, what surprised me the most is not Bitcoin's sideways movement, nor the sluggishness of altcoins, but Dogecoin.
That's right, it's the DOGE that is often treated as a 'meme', which after breaking below $0.15, not only did not continue to weaken, but is instead brewing a highly probable rebound.
If you think this is just a short-term pullback, you might miss out on a classic 'harvest' script that has been quietly running.
Is Dogecoin 'distributing' after breaking the key level?
According to the views of veteran crypto market analyst Trader Tardigrade, Dogecoin is currently at an extremely critical technical structure - the third phase of the PO3 model, which is 'distribution'.
Let me briefly explain what PO3 (Power of Three) is: it is a classic trading structure originating from Smart Money, divided into three phases - accumulation, manipulation, and distribution.
Tardigrade's chart shows that this wave of DOGE's PO3 sequence roughly began on June 25 -
A slight fluctuation in the early stages indicates gathering of chips at the bottom;
On June 27, the price suddenly plunged, breaking below $0.15. This 'manipulation' phase is quite standard, aimed at clearing out floating chips and inducing panic;
However, the market did not continue to plummet but quickly recovered, and on June 30, it began to rebound, returning to the $0.16-$0.175 range.
In other words, that 'head-and-shoulders' pattern you thought was there is actually a smokescreen laid by the main force.
From MACD to rebound structure, technical indicators have fully turned bullish.
In addition to the PO3 structure, the technical analysis has also provided a stronger signal.
Tardigrade pointed out that Dogecoin's daily MACD has formed a bullish crossover - this is the first clear reversal signal in the past few weeks. The MACD is like a compass of momentum; it has been bearish since early June, but is finally turning upwards.
Combining the previous PO3 structure, this is essentially a dual resonance of 'theory + technical'.
Interestingly, Dogecoin's price has recently rebounded to around $0.175 and has broken through short-term resistance, meaning that the rise after that 'false breakdown' could mark the beginning of the next major uptrend.
If you are an old friend who operates by looking at charts, you must understand - breaking down and then reversing is a textbook-level trap for shorts turning into longs.
How will it move next? Targeting $0.28 or higher?
According to the structure given by Tardigrade, as long as Dogecoin can continue to hold above $0.15 and maintain the current trading volume, the next target could possibly be pulled directly to $0.28.
To be honest, I am a bit optimistic.
After all, the Dogecoin market we've seen has never followed the rules; explosive moves like the one from $0.05 to $0.7 in 2021 are not the first time. Now the structure is even being laid out; if we add a stable market or a tweet from Musk, it would be the perfect timing.
Lastly, let me ask: should we chase now?
My suggestion is two words: light positions.
Currently, although Dogecoin has shown some upward structure, it has not completely broken away from the consolidation range, indicating 'direction has appeared, but trend has not yet established.'
If you're aggressive, you can follow with a small position, placing a stop-loss around $0.148; for more cautious friends, waiting for a breakout around $0.18-$0.185 to chase would not be too late.
Ultimately, the crypto world has never been short of opportunities, but understanding the rhythm and hitting the right points is key.
Conclusion
This wave of Dogecoin's movement may not immediately lead to a big rise, but the 'technical rehearsal' has already begun. Whether you are a trading enthusiast or an analytical tech model researcher, this dual signal of PO3 + MACD is worth keeping a close eye on.
What do you think of this round of DOGE operations?
That's all for the article! If you feel lost in the crypto space, consider joining me in laying out strategies and harvesting from the market makers!