Dogecoin is emitting familiar signals reminiscent of its historical bull runs. Cryptocurrency analyst CryptoKaleo reports that Dogecoin is forming a descending wedge pattern, similar to setups preceding major bull runs in 2017 and 2021.
Historically, these patterns follow prolonged downtrends and accumulation phases before producing strong price movements. According to Kaleo, DOGE has just exited this wedge pattern, potentially setting the stage for a strong bull run.
The chart shows that if this pattern continues, DOGE could rise to $0.64. In a similar setup at the end of 2024, Dogecoin increased by nearly 250%.
At the time of writing, the coin is trading at $0.2114, having risen 30.58% over the past seven days. This breakout, supported by technical indicators, is being compared to this coin's legendary bull run in early 2021.
Rising Futures Rates Boost Optimism
Recent data from CoinGlass confirms a surge in Dogecoin's open futures contracts, now nearing $1 billion. The increase in futures positions closely follows the price recovery of this coin, reflecting renewed interest from leveraged traders.
This trend has previously been accompanied by significant price volatility, with similar patterns observed during the bull runs of late 2023 and early 2024. The correlation between price movements and open futures contracts indicates increasing market participation.
Analysts note that such conditions could serve as a springboard for strong price movements. As DOGE breaks through long-term resistance, the combination of technical breakout and futures trading activity could support further growth.
Key Levels and Potential of Altseason
DOGE is currently holding above its nearest support levels of $0.18424 and $0.16292. Maintaining upward momentum above these levels is considered critical to confirm the breakout.
Technical forecasts remain unchanged as long as the price stays within this bullish structure. Traders are monitoring the $0.20 to $0.22 range for signs of sustainable buying pressure.
A continued bullish run could push Dogecoin into multi-dollar price levels, repeating previous cycles. With renewed interest in the meme coin, analysts suggest that DOGE's breakout could also mark the beginning of a new altcoin season.