Dogecoin is showing signs of a bullish market structure change, with a potential double bottom pattern forming. Breaking through important resistance levels could initiate a price surge towards $0.23.
Dogecoin (DOGE) is on the verge of confirming the double bottom pattern, a classic reversal pattern signaling continued bullishness if the neckline resistance level is broken. Recent price action indicates strong support at $0.15, where multiple successful retests have produced upward movements. Dogecoin is currently trading at an important resistance area, and traders are closely monitoring signs of a breakout surge.
Key Technical Points
Support at double bottom at $0.15: The low value area acts as a solid foundation, creating upward momentum.
Resistance at Fibonacci 0.618 and High value area: Dogecoin is currently testing this confluence resistance level.
Potential market structure change: Higher lows on POC will confirm the continued bullish trend.
Dogecoin has tested the low price area of $0.15 multiple times in recent weeks, and each retest has led to new buying pressure. This level now serves as the foundation for the forming double bottom pattern, which, if confirmed by a breakout, would signal a larger bullish reversal.
The price action has now surpassed the previous peak, which is an early sign of a market structure change. This breakout has brought Dogecoin to an important resistance area, the Fibonacci retracement level of 0.618 and the high value area, a region that previously often acted as a reversal point or activation point for continuation, depending on trading volume and market context.
If DOGE encounters short-term rejection here, a pullback to the control point may occur. This would create an ideal opportunity to form a higher low, a key technical factor of a confirmed trend reversal. Holding above the POC will signal strength and maintain the bullish trend, keeping the double bottom pattern valid.
The double bottom pattern will be activated when Dogecoin breaks above the current resistance area with strong momentum and a push-style closing candle. This has not yet occurred, but the price structure and momentum suggest Dogecoin is preparing for such a move. Monitoring trading volume in this area will be crucial, as increased trading volume will signal breakout strength and confirm the bullish trend.
What to Expect in Upcoming Price Action
If Dogecoin surpasses the current resistance level and trading volume increases, a price surge towards the higher timeframe resistance level of $0.23 could occur. However, there is also a possibility of a pullback before continuing the bullish trend. As long as the price remains above the control level, the market structure will favor the bulls.